SME Credit Guarantee Fund (FGAR) - ALGERIA


presentation The SME Credit Guarantee Fund (FGAR)

1- Legal structure and statutes


The SME Credit Guarantee Fund (FGAR), created by Executive Decree No. 02-373 of 6 Ramadhan 1423 corresponding to November 11, 2002 pursuant to the Orientation Law on SMEs, sets out the statutes of the Guarantee Fund. Under the supervision of the Ministry of Industry and Mines, the FGAR has legal personality and financial autonomy.

2- The objectives of the FGAR

The main objective of the FGAR is to facilitate access to medium-term bank financing in order to support the start-up and expansion of SMEs, by granting credit guarantees to commercial banks, in order to complete the financial package of projects. businesses, viable and oriented towards the creation and / or the development of enterprises.

legislation The SME Credit Guarantee Fund (FGAR)


1- Executive Decree No. 02-373 of 6 Ramadhan 1423

Corresponding to November 11, 2002 creating, and fixing the statutes of the credit guarantee fund for small and medium enterprises.

Official Journal of the Algerian Republic No. 74

2- The law on orientation on SMEs

The law on orientation on SMEs

3- The Orientation Law on the Development of Small and Medium-sized Enterprises (SMEs)

4- Investment Development Act

5- The new status of FGAR

6- Executive Decree No. 17-193 of 16 Ramadan 1438

Mission of the SME Credit Guarantee Fund (FGAR) 




* Grant credit guarantee to SMEs

* Guarantee the relays of programs set up for SMEs by international institutions

* Provide advice and technical assistance to SMEs benefiting from the Fund Guarantee

* Undertake any project of partnership with the institutions activating within the framework of the promotion and the development of the SME

* Undertake any action aimed at the adoption of measures relating to the promotion and support of SMEs in the framework of the guarantee of investment credits.

FGAR eligibility criteria 

1- Eligible projects from the SME Credit Guarantee Fund (FGAR)Priority is given to SMEs with projects to:


· Manufacturing of goods or service offerings that do not exist in Algeria.

· The creation of a strong added value to manufactured products.

· The reduction of imports.

· Increased exports.

· The use of natural resources available in Algeria while promoting the processing of local raw materials.

· Optimum funding in relation to the number of jobs created.

· Recruitment of young graduates from trades training centers, technical schools and universities.

· Completion of projects in regions with a large surplus of labor.

· The development of new skills, especially in the new economy.

· Innovation through technology or know-how.

2- Non-eligible projects of the SME Credit Guarantee Fund (FGAR)

· Projects whose financial arrangements already benefit from a support mechanism of the public authorities

· Projects that do not meet the definitions of an SME as described in Law No. 17-02 of 10 January 2017 on the Orientation Law on the Development of Small and Medium Enterprises (SMEs)

· Are also excluded from the scope of this law:

o Banks and financial institutions

o Insurance companies

o Listed companies

o Real estate agencies

o Import / export companies, companies working exclusively in the trade

o Any project to refinance old debt

o Any business that could harm the environment and / or the ecosystem.

Terms of coverage of the SME Credit Guarantee Fund (FGAR)

1- Terms of coverage FGAR

The guarantee of the FGAR covers a rate of the principal balance of the credit granted by the Bank. This percentage is established for each project. It is specified in the guarantee certificate issued by the FGAR to the Bank.

· The guarantee rate is between 10% and 80% of the credit amount. This rate is calculated for each project according to cost and risk.

· The maximum amount of the guarantee per project is 100 million AD backed by Fgar Funds for creation and extension projects. The maximum amount of 100 million DA means the guarantee granted and not the cost of the project.

· The maximum duration of the guarantee and fixed at: 7 years for a conventional investment credit and 10 years for a leasing.

· The guarantee granted must be necessary for the realization of the project for which it has been granted.

· The bank will ask for security over the assets planned for the project financing.

· A detailed business plan according to FGAR standards is required.

· The guarantee is offered only after analysis of the project by the FGAR.

· The investor can at the same time present the project to his bank.

· The definitive guarantee can only be granted after the notification of the financing agreement to the promoter by the Bank.

2- Costs related to the coverage of the guarantee

· A study commission is fixed by the FGAR for the cover of the study costs of the file of an amount of 20 000,00 DA without taxes.

· A commitment fee in the form of a single premium calculated annually on the basis of the outstanding amount of the guarantee and payable in one go upon the issue of the guarantee certificate, according to the following fees:

o 1% per annum of the outstanding amount of the investment loan guarantee

o 0.50% of the outstanding amount of the lease guarantee.


Guarantee Application File by the SME Credit Guarantee Fund (FGAR)

The investor must present a business plan - busines plan - including the technical and economic study of his project accompanied by legal documents of the company.

The warranty claim can be either:


I - Presented directly to the headquarters of the FGAR by the promoter,

II - Addressed by mail to the address of the FGAR

III - Forwarded to the FGAR e-mail address: Email: info@fgar.dz


FGAR Warranty Process

Main steps in the progress of the warranty claimThe main steps are summarized as follows:


Step 1: Meeting with the FGAR and summary presentation of your project. A business plan developed according to FGAR requirements is requested.

Step 2: The FGAR sends you an acknowledgment letter.

Step 3: Analysis of the Business Plan and other documents.

4th step: Meeting of the Commitments Committee of the FGAR for the approval of the file.

Step 5: Delivery of a letter of guarantee offer by the FGAR to the SME which constitutes an agreement in principle pending the notification of the financing agreement by the bank.

Step 6: Delivery of a loan agreement from the Bank to the SME.

Step 7: Delivery of the FGAR guarantee certificate to the Bank.



Fgar simulation


Warranty Application

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