The device combines technical support before and after financing with instruments such as the refinancing line of partner institutions and the guarantee of risk sharing.


Processes and flows of the financial mechanism

The various activities and flows (requests, transfer of documents and funds, checkpoint, etc.) which constitute the body of operations related to the financial mechanism for agricultural enterprises within the framework of the PD_CVA comprise ten essential phases.

Table of the phases of the financing scheme for targeted enterprises at the PE and EPT Window.

Individual guarantee: risk sharing granted on a loan-by-loan basis, especially for large companies;

A safeguarding of the risk in local currency or in euro, over periods ranging between 2 and 5 years

A risk sharing up to the equivalent of an amount to be negotiated;

Prompt instruction and decision by the PMU with the support of CMFO;

A guarantee percentage of up to 50%.

Portfolio guarantee: risk sharing for a portfolio of credits

An instrument for banks wishing to develop their activity to finance their loan portfolio in favor of SMEs in livestock and fishery value chains;

50% of the credit risk of a loan portfolio;

Of eligible loans with amounts in excess of XAF 100 million

at. The financing instrument: The credit that will be granted to the SME or the Large Enterprise will correspond to a maximum of 90% of the financing needs. The proponent will make a personal contribution of at least 10%. The commercial bank will commit its own resources.

c. Revenues: A line of credit for the financing of campaign credit, working capital or a medium-term loan to finance equipment.

d. The interest rate: it will be the market rate.

e. The duration of the loan will depend on the activities to be financed and the products to be deployed.

f. Guarantee: for the bank, a financial guarantee will be established on the project resources to cover 50% of the risks directly taken by the partner bank (s). For the investment needs of entrepreneurs, the bank will also use leasing.