Guarantee Funds of Credits in Romania - Necessity, Features and Networking - II

• Main Authors: Georgeta Dragomir, Mariana Trandafir
• Format: Article
• Language: English
• Published: Danubius University 2011-12-01
• Series: Acta Universitatis Danubius: Oeconomica
• Subjects: guarantee bodies; guarantee costs; benefits
• Online Access: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1323/1178
• ISSN: 2065-0175; 2067-340X

In the current context, marked by financial crisis, economic recession, lack of liquidity andlow capitalization, the access tofinancing is more difficult, mainly due to the lack, insufficiency orlimited availability of guarantees. Guarantee funds represent an innovative solution, proven by theEuropean economies and recently launched in Romania. Taking over the international experience inorder to facilitate the SMEs’ access to financial resources has become a necessity in Romania, whichwas reflected by the creation of three specialized financial institutions in granting guarantees domain.These are bodies with private or publiccapital, which relate, based on agreements with commercialbanks. After a period of exposure to major risks from the lack of regulatory activity, the guaranteefunds, along with other non-banking financial institutions are absolutely governed by rules oftheNRB, according to the banking law and special laws. The analysis in this paper is based on the studyof several official documents, reports of specialized bodies, statistics and examples of good practice,summarized and interpreted in through comparison and developments. The aim is to identify anumber of issues that may lead to sensitize the responsible factors-public authorities, creditinstitutions, and specialists-to come up with new practical solutions that would stimulate thefinancing processof small entrepreneurs.