Government offers sovereign guarantee for businesses
According to new regulations enacted by the finance ministry last week, sovereign guarantees will only be offered for loans taken with an interest rate below four percent to finance tourism-related projects, social housing projects that meet the government’s criteria, and high-priority development projects.
02 Jan 2017, 9:00 AM
The government has offered to provide sovereign guarantees for a fee to cover loans taken by state-owned enterprises and private companies.
According to new regulations enacted by the finance ministry last week, sovereign guarantees will only be issued for loans taken with an interest rate below four percent to finance tourism-related projects, social housing projects that meet the government’s criteria, and high-priority development projects.
“The main purpose of this regulation is to ensure that guarantees issued by the state are provided transparently, in an equal manner, and in accordance with sound principles,” reads the rules.
The government will charge a one-time fee of one percent of the guaranteed loan amount as well as an annual administrative fee of 0.25 percent.
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