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DDue to the economic situation that arose around the pandemic issue, the National Guarantee Fund (FNG) ensures that although the banks were initially reluctant to lend, with guarantees of up to 90% of the loans that the Government, yes they are.
In an interview with Colprensa, the manager pointed out that there are already more than 100,000 companies benefiting from these loans, of which more than 60,000 have been for the payment of payrolls. He assured that a first package of 10 trillion pesos in guarantees is already practically exhausted and in a few days another one will be released, for 6 trillion pesos.
How does this system of guarantees operate that they are giving in favor of companies? How many companies are covered and what is their goal?
In essence, what the National Guarantee Fund does is serve as guarantor for micro, small and medium-sized companies to obtain loans from the financial system. Most of the time, that small company has no assets to give as collateral, so at that time the bank can go to the FNG guarantee. Under normal conditions we guarantee 50% of the obligation, that is, we share the risk half and half with the bank. That is a scheme that works quite well. To give you an idea, last year we guaranteed approximately 15 trillion pesos in credits to this entire sector of Mypimes. In the current circumstances of the coronavirus, as financial institutions perceive such a high risk, they were not willing to deliver the loans with a 50% guarantee. That was when the complaints of the businessmen who went and did not get them to give them a credit began. Then the Government decided to make a more aggressive guarantee policy. There are a total of 16 billion pesos, of those, 12 go for what the Government considers to be the highest priority, which is to finance the payment of payrolls. The payrolls, with a guarantee of 90%, 3 trillion are oriented to working capital lines for companies of different sizes, with a guarantee of 80%, and there is a trillion pesos that is oriented to independent workers, understanding by such all those people who have an activity in which they themselves are the source of income generation, dentists, accountants, plumbers.
Is there a perception that banks despite these guarantees do not want to lend. Do you see it that way and if so why is that happening?
I believe that as a result of the exit of this program there was a shift in the position of the banks. Indeed there was a very large restriction, but what we have seen is that as a result of this program it has changed. The banks have shown an interest, the proof is that we initially left with 10 billion and soon we will leave with the remaining 6. Within those initial 10 billion there were 6 for payroll and that silver is practically exhausted. There were 3 billion for working capital and they are also practically exhausted.
Do you have the calculation of how these credits can impact in preventing unemployment from increasing?
It is quite difficult. We do not have a calculation, but if you look for example at the case of payrolls in particular, there are 62 thousand companies that have requested loans to maintain payrolls, so it has a very large multiplier effect on the number of jobs that are maintained.
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Seeing how successful the credits have been, do you see that there may be additional quotas, or do I think that quota is sufficient?
No, in fact, the total value of the quota is 16 trillion and we initially left with a tranche of 10. We are going to leave in the next few days with a second tranche, which is the remaining 6 trillion. So in the short term, in a matter of a week, ten days, we are leaving with a second tranche and that is going to give new oxygen in this matter. I do not rule out that, as the need is felt, the Government will surely consider the possibility a little later of increasing even this. An instrument that is helping companies to reactivate and maintain employment will not miss it.
How do they see the risk of a financial crisis. Is it controlled or is there a concern?
With the information we have today, we do not see the possibility of a financial crisis. The truth is that the financial system is solid: it has quite good levels of capital and provisions, also a very good quality supervision by the financial superintendence and also for these loans that are being granted in this segment of micro, small and medium-sized companies have our backing, which substantially mitigates the risk. In addition, Banco de la República has been irrigating the system with a lot of liquidity, lowering interest rates. I believe that we are indeed entering a crisis in the productive system, a recession, but that is not necessarily accompanied by a financial crisis.
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