SOVEREIGN LOAN GUARANTEE TO HELP BUSINESSES AFFECTED BY THE RESTRICTIVE MEASURES TAKEN FOR COVID – 19

It is published in the Official Journal no. 60/2020. DCM no. 277, dated 06.04.2020 “On the approval of the state loan guarantee with the second-level banks for the salaries of traders or trade companies, whose activity has been affected by the decisions of the Council of Ministers, in the framework of managing the situation created by COVID-19, as well as for the determination of the terms and conditions of the agreement of understanding”. Below you will find briefly summarized the defined criteria and procedures. ·

Who applies? Traders or trade companies whose activities have been closed or affected by a decrease in turnover as a result of decisions of the Council of Ministers and orders issued by the Ministry of Health and Social Protection in the context of managing the situation created by COVID19. There are not included traders or trade companies that prior to the approval of this DCM, they are subject to benefit from the payment subsidy scheme according to decision no. 254, dated 27.3.2020, of the Council of Ministers, “On the determination of procedures, documentation and the measure of receiving financial assistance for employees in business entities with annual income up to 14 million ALL, economic assistance and payment of income from unemployment during the period of natural disaster, declared as consequence of COVID-19 ”. ·
Borrower Eligibility Requirements
1. The borrower must be part of the category of entities affected by government decisions in the context of managing the situation created by COVID-19;

2. The borrower must have the ability to repay the loan in line with the criteria operated by the banking sector in the Republic of Albania;

3. The purpose of using the Loan Fund will only be to pay the salaries of the Borrower’s Employees based on the payroll processed by the Lender in February 2020.

Loan criteria
1. The loan value made available in any case does not exceed the value of 3 gross monthly salaries of the declared employees;

2. The average life of loan will be at the discretion of the Lender, but not exceeding in any case the average life of 2 years;

3. The loan will have a free principal period of 3 months;

4. Currency of the Loan will be in local currency (lekë);

5. The lender will not apply administrative costs to the Loan. ·

Deadlines The borrower must submit the loan application to the Lender no later than 30 days from the date of signing this agreement.