Open Credit Fund – is a financial engineering “Open Credit Fund” (OCF) facility of INVEGA Fund.

This facility is implemented as an open credit fund for financial intermediaries who grant credits to SME. Resources for OCF will be committed in INVEGA Fund. All financial intermediaries satisfying the established criteria will participate in the implementation of this facility. A bank, having adopted the decision to grant a credit conforming to the set requirements shall submit a request to INVEGA for reservation of OCF resources. OCF resources will be appropriated to banks according to the sequential order of submission of requests for reservation of OCF resources. Within 15 business days of the day on which a request for reservation of OCF resources is submitted a bank has to furnish INVEGA with a certified copy of the credit agreement and the application for the granting of OCF resources (in the form established by INVEGA with specified time limits for the transfer of OCF resources). If a bank fails to submit a certified copy of the credit agreement in good time the reservation will be cancelled. INVEGA may transfer OCF proceeds to a bank as a lump sum or in instalments according to the requests received from banks and time limits specified in the application.

Credits or parts thereof repaid by SME will have to be transferred to OCF. INVEGA will operatively communicate balance particulars to the financial intermediary posting the information on the internet website:

Maximum 75% of the credit amount will be granted to banks from OCF proceeds. As part of implementation of this facility selected banks will have to contribute at least 25% of their own funds to OCF proceeds. On resources lent from OCF banks will pay to INVEGA Fund the interest rate of 3-month VILIBOR +0.1%. OCF proceeds will be lent to banks for the maturity of granted credits, but no longer than until 31 December 2020. Credits from OCF resources will be granted by banks on the basis of open credit line agreements concluded with INVEGA.

Credits to SME may be granted in euros for investments and for supplementing their working capital. The amount which may be granted from OCF for one credit shall not exceed EUR 434 430. During the period of 12 months one SME may receive maximum two credits. Credits to SME may be granted for maximum period of 60 months with the possibility of extension for another 12 months. Agreements with credit institutions can be made until 30 January 2016.

Loan in euros – SME’s have to pay 3 months. EURIBOR +0.1 %, but no more than 3 % and less than 1 % annum interest, plus bank margin to a maximum amount not to exceed 3 %.

By this facility JEREMIE initiative will be implemented. JEREMIE is a joint initiative of the European Commission (Directorate General for Regional Policy (DG Regio), the European Investment Bank (EIB) and the European Investment Fund (EIF) aimed at enabling Member States to utilise part of resources allocated to them from the EU Structural Funds for the funding period 2007–2013 to improve access to financing for micro, small and medium-sized enterprises (hereinafter SME) by setting up the revolving controlling funds. The purpose of a controlling fund shall be to improve access to financing for SME employing a set of different financial instruments (products).

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Atnaujinta 2016-06-27