The Vice-President of the Government stressed the importance of the new line of credit based on a mutual guarantee scheme, designated as "Capitalizar Mais," which will provide Azorean companies with 79 million Euros of financing under more favourable conditions.
 
"Given a new cycle of development, with the positive evolution of indicators in all sectors of economic activity, it is also important to create measures to support the capitalisation of companies," said Sérgio Ávila. He highlighted the financing agreement signed with the Financial Institution for Development - IFD, also known as Development Bank, which allows the creation of new financing support tools.
 
The government official spoke Thursday at the information session to disseminate this new line of credit in Ponta Delgada. On the occasion, he pointed out that the Government plans to create Lines of Credit for Mutual Guarantee Investments as well as Lines of Financing for Venture Capital Funds and Reversible Capital Transactions. There are also plans for the establishment of a Line of Financing to be designated as Business Angels.
 
"These new innovative tools ensure the allocation of up to 100 million Euros of funding from the selected financial and banking institutions," said Sérgio Ávila. The government official stressed that the Regional Government has provided "significant resources in accordance with the regulatory framework approved by the European Commission."
 
The "Capitalizar Mais" Line, already accessible to companies through adhering banks, supports the funding of new investments in tangible or intangible fixed assets as well as the increase of working capital associated with an effective increase in activity.
 
This measure also covers non-eligible costs of applications approved under Competir+, including working capital.
 
The new financing tool also provides for support to the acquisition of property and land for business activity purposes. The maximum amount cannot exceed 50 percent and 10 percent of the overall amount of financing, respectively.
 
"Credit operations to be carried out under this line benefit from an autonomous guarantee, at the first request, intended to secure up to 80% of the outstanding capital at any time," said the Vice-President. According to him, the guarantee will "substantially reduce the risks of bank funding and facilitate the granting of credit."
 
In addition to substantially extending the possibilities of credit approval to fund investments and ensuring the liquidity of companies, the "Capitalizar Mais Line" stipulates a maximum period of 12 years for credit operations.
 
"Therefore, this is an opportunity of great importance," Sérgio Ávila said, pointing out that, "with this measure, we contribute to further facilitate and encourage private investment."