General Assembly of European Association of

Mutual Guarantee Societies

– AECM

16.-17. October 2014 - Istanbul

INITIAL DATA

Closed joint stock company

Funded by virtue of the Decision of the Republic

of Srpska Government from July 2010

The founding capital – 15.000.000 EUR

Maximum portfolio of guarantees – 45.000.000 EUR

LIMITATIONS FOR APPROVAL OF THE GUARANTEES

Maximum guarantee amount by which the Fund can support the loan is up to 50% of the loan amount

Maximum amount of the guarantee is 5% of the Fund's capital

The maximum amount of the obligations guaranteed to any bank or financial institution is up to 30% of guaranteed potential

TYPES OF LOAN GUARANTEE FACILITIES

1 Loan guarantee facility for start-up

3 Loan guarantee facility for entrepreneurs

2 Loan guarantee facility for registered agricultural

holdings

5 Loan guarantee facility for companies

4 Loan guarantee facility for agriculture

THE BENEFICIARIES OF THE FUNDS UNDER THE LGF

LGF for start-up

• Entrepreneurs and legal persons that have been performing registered activity with the aim of gaining a profit not longer than 18 months

LGF for agricultural holdings

• Persons registered in the Register of Agricultural Holdings at the Agency for Intermediary, IT and Financial Services

LGF for agriculture

• Entrepreneurs performing the manufacturing and processing in the agriculture or fisheries

LGF for entrepreneurs

• Entrepreneurs performing the registered activity with the aim of gaining a profit

LGF for companies

• Legal persons performing the registered activity with the aim of gaining a profit

THE AMOUNTS OF GUARANTEES UNDER THE LGF

LGF for start-up and agricultural holdings

• From 1.500 to 20.000 EUR

LGF for agriculture and companies

• From 5.000 to 750.000 EUR, for fixed assets (min. 30%) and operating assets (70%)

• From 5.000 to 150.000 EUR only for operating assets

LGF for entrepreneurs

• From 1.500 to 150.000 EUR for fixed assets (min. 30%) and operating assets (70%)

• From 1.500 to 50.000 EUR only for operating assets

REPAYMENT PERIODS AND GRACE PERIODS UNDER THE LGF

LGF REPAYMENT PERIOD GRACE

LGF for start-up Up to 7 years Up to 12 months

LGF for agricultural holdings

Up to 10 years Do 36 months

LGF for agriculture Up to 15 years (fixed or fixed/operating assets) Up to 5 years (only operating assets)

Do 36 months Do 12 months

LGF for entrepreneurs Up to 15 years (fixed or fixed/operating assets) Up to 5 years (only operating assets)

Do 24 months Do 12 months

LGF for companies

Up to 15 years (fixed or fixed/operating assets) Up to 5 years (only operating assets) Up to 1 years (preparation of export)

Do 24 months Do 12 months Do 12 months

MAXIMUM OUTPUT INTEREST RATES

%

5,5

6,4

5,9

6,6

6,9 LGF for start-up

LGF for agricultural holdings

LGF for

agriculture

LGF for

companies LGF for

entrepreneurs

RATES OF RISK PREMIUM

%

on the

guarantee

amount

2,1

3,1

2,3

3,0

3,2 LGF for start-up

LGF for agricultural holdings

LGF for

agriculture

LGF for

companies LGF for

entrepreneurs

PHASES OF ISSUANCE OF GUARANTEE

Addressing client to commercial bank

Addressing commercial bank to the Fund

Rating the creditworthiness of the client; decision of the Board of the Fund, the Guarantee Fund Committee or the General Assembly concerning the issuance of guarantees

Issuing guarantees to commercial banks on the basis of the Agreement on technical cooperation

Monitoring the proper use of funds

GUARANTEE AMOUNT DECISION IS MADE Up to 13.000 EUR The Board of the Fund Up to 150.000 EUR The Guarantee Fund Committee under 150.000 EUR The General Assembly

REVIEW OF GUARANTEES ISSUED

4 4

37 22

12

NUMBER OF GUARANTEES ISSUED

LGF for start-up

LGF for entrepreneurs

LGF for companies

LGF for agriculture

LGF for agricultural holdings

AMOUNT OF GUARANTEES ISSUED

43

127.000,00 EUR

5.900.000,00 EUR

4.400.000,00 EUR

112.000,00 EUR

43.000,00 EUR

www.garantnifondrs.org

info@garantnifondrs.org

+387 51 231 380

Vidovdanska 2, Banja Luka

Republic of Srpska, Bosnia and Herzegovina

Thank you for your

attention!