The Ministry of Finance and Public Credit issued legislative decree 816 of 2020, establishing rules related to the administration of the National Guarantee Fund S.A. (hereinafter FNG), within the framework of the State of Economic, Social and Ecological Emergency declared by Decree 637 of May 6, 2020.
The Decree establishes the special framework of authorizations of the FNG to give access to credit with the resources transferred in order to comply with Decree 492 of 2020. Regarding the resources transferred, the following rules apply:
A. The Guarantee Committee to deal with COVID-19 (hereinafter "the Guarantee Committee"), will be in charge of coordinating, following up and evaluating the strengthening of the NGF's assets. This technical body has the function of designing, implementing, monitoring and controlling the credit lines designed for individuals or legal entities that have suffered adverse effects on their economic activity by the COVID-19. This Committee is made up of the Minister of Trade, Industry and Tourism, or his delegate, the Ministry of Finance and Public Credit, and the other members defined in the resolution issued for this purpose by the Ministry of Finance and Public Credit.
B. With the resources resulting from the operations described in articles 3 and 4 of Legislative Decree No. 492 of 2020, they will be used to strengthen the NGF. This public entity shall support its participation as guarantor or guarantor of all kinds of active operations of the financial institutions or other institutions that carry out credit operations with natural or legal persons that have suffered adverse effects from the COVID-19. Likewise, the FNG shall be the guarantor of bond issues or other investment titles that have the purpose of obtaining resources for the purposes established in this Decree.
C. The FNG may carry out the different operations authorized by the Organic Statute of the Financial System in order to attend the trade, service, industrial, agro-industrial and export sectors, or other sectors or programs, or natural or legal persons that have suffered adverse effects on their economic activity due to the pandemic.
D. In addition, the Guarantees Committee has the following functions related to guarantees, counter-guarantee operations and other instruments issued by the FNG:
(i) Drawing up the general policy to be followed by the NGF, establishing the priorities, sectors or programmes to be addressed.
(ii) Define the characteristics of guarantees for counter-guarantee operations and other instruments, taking into account:
(i) the maximum percentage of coverage of the instruments issued by the NGF,
(ii) the rate of commission of the NGF and the maximum percentage of the subsidy
(iii) the maximum amount of credit operations that the NGF can guarantee for a specific credit line,
(iv) the mechanisms and opportunity for the transfer of heritage resources for the strengthening of the NGF,
(v) the priority sectors to which such guarantees and instruments should be directed.
(vi) Determine the value of any other services provided by FNG in connection with the credit lines, where applicable.
It should be noted that decisions related to the approval and granting of guarantees and counter-guarantee operations should be evaluated jointly and as part of an integral policy to solve social and economic needs derived from situations caused by the pandemic.
Finally, after the events that led to the Economic, Social and Ecological emergency declared by Decree 637 of 2020 have been overcome, the Guarantees Committee may delegate its functions assigned in this Decree to the general meeting of shareholders, the board of directors or another administrative body of the FNG.