2023-06-03 17:30:00
ALGIERS – The Guarantee Fund for SME investment credits (CGCI PME) granted guarantees in 2022, excluding the agricultural sector, for more than 31 billion dinars (DA billion) of loans, against 20 billion DA in 2021, indicated the director general of this institution, Samir Medjkane.
“For the 2022 financial year, the fund guaranteed 505 credit operations with an overall value exceeding 31 billion dinars. Compared to the previous financial year, a 57% increase in the value of guaranteed credits was recorded,” Medjkane told APS.
This development results from the increase in credits requested by companies operating in particular in industry, construction and transport, from the commercial action of the CGCI towards the banks and its efforts to shorten the processing times for files.
Started in 2006, the fund specializes in granting financial guarantees to banks, which pay a premium (0.5% of the loan amount), to cover a large part of the risk they take on financing. SMEs in the event of non-reimbursement. It is a device that aims to reinforce banks in risk taking.
According to the general manager of the CGCI, the latter has granted cumulative guarantees for 4,300 investment projects equivalent to more than 180 billion DA since its creation and until the end of 2022.
Asked about the compensation granted following credit claims, this manager said that they totaled 1.6 billion DA during the past year, specifying nevertheless that this amount also partly covers previous years.
“In recent years, especially with the Covid-19 health crisis and its repercussions, the loss ratio has increased by 5 to 9%”, explained the DG of the CGCI, specifying that “the difficulties of certain SMEs arise at the stage of creation, more particularly in the building sector”.
Indeed, in the event of a guaranteed credit claim, the fund compensates the bank up to 60% for an investment credit or 80% when it comes to a business creation credit.
Launch of a digital platform
With a share capital of 20 billion DA, CGCI is 60% owned by the Public Treasury while the remaining 40% is shared between six public banks (CPA, BDL, BNA, BEA, BADR and CNEP).
The fund, which guarantees loans granted to SMEs but also to very small businesses (TPE), also manages on behalf of the Public Treasury an Agricultural Guarantee Fund (FGA) in collaboration with the Bank for Agriculture and Rural Development ( BADR), recalls Mr. Medjkane.
Endowed with 20 billion DA, this Fund makes it possible to guarantee the financing granted by the BADR (credits Rfig, federal Rfig and Ettahadi).
In 2022, the CGCI guaranteed some 12,000 agricultural credit files for a total amount of guaranteed BADR credits of 16 billion DA, while compensation totaled 148 million DA.
The CGCI, which acts as an accelerator for the granting of loans to SMEs, offers its guarantee to shareholder banks as well as to specialized credit institutions and leasing companies.
Speaking, on the other hand, on the digital transformation plan of the CGCI, its director general announced the online launch “before the end of June” of a web platform allowing to dematerialize the flows of subscription to the guarantee and the declarations of claims and facilitate access to them for partner banks and financial establishments, of which there are 13.
This “Guarantee Extranet Portal” will give banks the possibility of “saving time in the management and monitoring of operations and a real-time exchange of regulatory documents related to the subscription to the guarantee and compensation” , he detailed.
The CGCI has already recently equipped itself with an electronic document management system (EDM) which has enabled it to ensure better control of procedures and document validation circuits, notes Mr. Medjkane.
In addition, this institution is betting on deployment in the four corners of the country and thus intends to open a liaison office in the East before the end of 2023, and another in the South in 2024, which will strengthen its local network, which until then has only regional direction located in the West.
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