swiss collateral facility programme
DESCRIPTION
SWISS COLLATERAL FACILITY PROGRAMME. 1999 SWITZERLAND HAS CONSTITUTED OF A REVOLVING FUND. PROVIDING COLLATERAL WARRANTIES FOR INVESTMENTS CREDITS FOR MICRO AND SMALL ENTERPRISES IN RURAL AREAS FOR FARMERS SHIFTING TO ORGANIC AGRICULTURE Available CHF 1’500’000 ( about EUR 1’000’000 ). - PowerPoint PPT PresentationTRANSCRIPT
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
SWISS COLLATERAL FACILITY PROGRAMME
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
1999
SWITZERLAND HAS CONSTITUTED OF A REVOLVING FUND
PROVIDING COLLATERAL WARRANTIES FOR INVESTMENTS CREDITS
• FOR MICRO AND SMALL ENTERPRISES IN RURAL AREAS• FOR FARMERS SHIFTING TO ORGANIC AGRICULTURE
Available CHF 1’500’000 ( about EUR 1’000’000 )
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
PURPOSE OF SWITZERLAND COLLATERAL FACILITY
Switzerland Collateral has the purpose of facilitating the access to credit of “marginally bank-able” rural MSEs and Organic Farmers, by making them eligible for bank loans, and thus enabling them to become sustainable and competitive enterprises.
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
UNDERLYING STRATEGY
To privilege MSEs credits, which are conducive to employment creation in rural areas
To identify and encourage farmers to move from “traditional” to “organic” production methods
To familiarise Banks’ credit staff with micro and small credits
To increase the skill of BDS providers in supporting the credit formulation
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
Beneficiaries:=micro and small enteprises in rural area=farmers involved in organic farming
Partners:
= 3 Banks (ProCredit bank Plc., Hebros Bank Plc.,UBB Plc.)
= BDS providers
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
THE ROLE OF THE BANKS
=to analyse the applications according to the procdures agreed with SDC
=to manage the credits and monitor the repayment of the loans and the realisation of the investment projects in co-operation with the service providers.
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
THE ROLE OF THE BDS PROVIDERS
=They support the Applicants in formulating their applications (business plans , cash flows)
=The BDS Providers submit the MSE’s or Farmers’ credit applications, fully documented according to standardised format :- to the banks and the Co-operation office- with a written recommendation formulated on a standardised format
=They are entrusted with the monitoring of their respective borrowers
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
THE ROLE OF SDC CO-OPERATION OFFICE
= It approves the applications for collateral of eligible credits
= It organises training to Credit of Bank Officers
= It organises training to BDS Providers
= It promotes the interaction between BDS Providers and Banks
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
Results achieved so far:
= The programme has reached a larger segment of eligible borrowers;
= More than EUR 2’500’000 have been provided as loans;
= Till today 3 guarantees were mobilised
= The awareness of the selected banks has increased;
= The role of the BDS providers has improved;
Rural Credit Gurantee Schemes Workshop, Budapest 12-13 January 2006
Challenges:
= The full potential of the SCF has not been mobilized yet
= There is still lack of financing for start ups and farmers
= In view of Bulgaria’s EU accession by 2007 SDC is looking for handing over the avaialble funds