This Monday 3 December Etienne Franzi, Chairman of the Monegasque Association of Financial Activities, and Isabelle Rusabrunetto, Director of the Budget and Treasury Department, signed the second amendment to the agreement constituting the Monegasque Credit Guarantee Fund.
From 1993 onwards, in a bid to develop the Principality’s business activities, Monaco's government formed, together with all local banks, a guarantee fund intended to guarantee support provided by the banks as part of company development, transfer and foundation projects.
The original agreement was first amended in 1997 but it became necessary to amend it again in order to update the Monegasque Guarantee Fund and to make it more accessible and more appealing.
The major changes made by the amendment of 3 December 2012 concern preliminary scrutiny of the dossiers, which may be entrusted to a specialised partner (OSEO), the ability to take into account cash flow restructuring and lowering of the commission rate to 0.30% of the total outstanding credit instead of a interest rates currently ranging from 0.35% to 0.60% depending on the dossier type.
These amendments should enable the banks to make use of the guarantee fund more easily and thus enable them to grant loans at a cost significantly reduced for the borrower in situations where the guarantees may at first sight appear insufficient.
