The guarantee of bank loans is assured by the Mutual Guarantee Fund for Micro Credits, established at the National Agency for Management of Microcredit by virtue of Executive Decree number 04-16 of 01-22nd-2004 regarding the creation and bylaws of the of the Mutual Guarantee Fund for Micro Credits (MGFMC).
The MGFMC aims to ensure micro loans granted by banks and financial institutions adherents to the fund, to beneficiaries who have obtained the notice for the National Agency for management of Microcredit’s support.
The MGFMC it covers, at the behest of banks and financial institutions concerned, remaining debts owed in principal and interest to the disaster declaration date and up to eighty five percent (85%).
As part of the implementation of the guarantee, the MGFMC is subrogated to the rights of banks and financial institutions, considering possibly, the reimbursed maturities and to the amount of risk cover.
May join the fund any bank or financial institution that has financed projects approved by the National Agency for the Management of Microcredit, as it is established the payment of contributions to the funds by the beneficiaries of micro-credit.