From June 4 to July 15, a total of 179 companies registered on the web platform of the Large Business Support Fund (FSGE-COVID-19). 54 business files were examined by the executive secretariat, provided by the Ministry of Trade and Industry, through its PARCI unit and 29 companies benefited from the support of the FSGE for an amount of 9.7 billion FCFA.

This is the assessment of the transitional phase established by, Soumahoro Mory, chairman of the management committee of the Support Fund for Large Companies (FSGE-COVID-19).

The guest of the Joint Technical Committee (CPT / COVID-19), recalled that the financial resources allocated for the transitional phase were 10 billion FCFA and welcomed the execution rate which is 97%.

Companies have benefited from this direct loan at a preferential rate of 3% with maturities of up to 36 months with a 6-month grace period.

In addition, to benefit from these funds, the company had to be under Ivorian law and achieve a turnover of more than one billion FCFA over at least two of the three successive years (2017, 2018 and 2019).

It had to be in operation for at least two fiscal years and the company had to have its activities negatively impacted by COVID-19, with an actual loss of 30% in turnover.

Finally, the company had to be up to date with its tax and social security declarations as of January 31, 2020 and its tax and social security adjustments as of December 31, 2019.

Soumahoro Mory assured that the process of setting up the operating mode entrusted to the IFC and for which the firm Deloitte was recruited is about to be completed.

The transitional phase prioritized hospitality, tourism, transport and trade as the most impacted sectors.

The President of the Fund said that the final phase is open to all companies that meet the criteria.

According to him, a new financial instrument has been added to direct loans as part of this second phase to better support large companies with a turnover of more than 3 billion FCFA. These are guarantees.

“It's a portfolio guarantee. It is therefore different from a direct guarantee. It consists for the FSGE in setting up a line of guarantee with a bank. Thus all customers of the said financial institution who meet the fund's eligibility criteria as well as banks can apply for loans that do not exceed one billion FCFA,” explained Soumahoro Mory.

“These loans must not exceed 36 months. The FSGE will therefore provide its guarantee to companies that meet the criteria. % while asking the financial institution not to take other guarantees. The bank assumes the risk of 25% on its own balance sheet. Of the 75% guarantee provided by the FSGE, there is 25% as a guarantee in cash (cash call). An account will therefore be opened in the books of the bank. In the specific case where the loan amounts to one billion FCFA. An amount of 250 million FCFA will therefore be deposited in the books of this bank to guarantee the loan. The remaining 50% is a signature guarantee. This means that if there is a payment deposit and the bank has used all legal means from the point of view of the OHADA, and it was unable to recover the funds, the guarantee is triggered from the c cash call account of 250 million FCFA," he continued.

If the amount of 250 million is exhausted, then the other 50% will be called from the fund, to raise the level of the fund's intervention.

He indicated that discussions are also underway for the signing of a framework agreement with the APBEF-CI so that the banks can enter the scheme.

Soumahoro acknowledged that discussions with APBEF-CI have not been easy because the conditions imposed on banks are quite restrictive.

"The bank's interest rate must not exceed 5% net. It will not be able to lend beyond 5% in addition to the fact that it will not be able to ask for additional guarantees. In this momentum, we wanted that the borrower's exit rate is also capped at 5%.These establishments will therefore not be able to charge other commissions or other costs to the company, which will thus bear 5% net," he said. -he mentioned.

It should be noted that the FSGE/COVID-19 is housed at the National Investment Bank (BNI), which ensures its administrative and financial management, under the authority of the Management Committee.