International development cooperation guarantee

International development cooperation guarantee

Loan guarantee to finance activities in developing markets

The International Development Cooperation Guarantee (IDC Guarantee) is available to small, medium-sized, and large enterprises that are implementing projects in developing countries and are seeking financing for their activities.

The IDC Guarantee is primarily intended to support the financing of investment expenditures related to business expansion into developing markets. Applicants must demonstrate that the financed project also delivers benefits to the partner country, such as the creation of new jobs, infrastructure development, technology and know-how transfer, the introduction of new production processes, or environmental improvements.

Applications are being accepted from 15 April 2019.

Programme Parameters and Benefits

Guarantee Coverage

up to 80%

Maximum Guaranteed Amount

up to CZK 50 million

Guaranteed Loan Amount

unlimited

Guarantee Maturity

up to 8 years

Guarantee Fee

0.5% p.a.

Eligible Use of the Loan

primarily investment expenditures.

Who Can Apply for This Guarantee?

The support is intended for Czech-based businesses of all sizes that plan to operate or invest in one of the developing countries eligible under this programme.

Projects implemented in developing countries must focus on one or more of the following areas: sustainable management of natural resources, agriculture and rural development, economic transformation and growth, support for local employment, sustainable development of partner countries.

What Can the Guarantee Be Used For?

The guarantee is available for projects contributing to sustainable management of natural resources, agriculture and rural development, economic transformation, economic growth, local employment, or the sustainable development of partner countries. Eligible expenditures include:

Acquisition and technical improvement (extensions, additions, reconstruction, modernization) of long-term tangible assets.
Acquisition of long-term intangible assets.
Costs related to technology and know-how transfer.
Costs associated with project implementation in the target developing country.

Important Information

The guarantee is provided as de minimis aid in accordance with Commission Regulations (EU) No. 1407/2013, No. 1408/2013, and No. 717/2014.

The IDC Guarantee Programme is financed from national resources allocated to the Czech Republic’s Development Cooperation Programme, administered by the Ministry of Foreign Affairs of the Czech Republic.

Documents and Further Information

Detailed programme information, application forms and submission guidelines are available on the Czech version of the programme website.

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