The National Fund for the Care and Development of Small and Medium Enterprises has recovered nearly one million dinars from defaulting borrowers, out of total outstanding financing estimated at about 20 million dinars.
The recovered amount represents roughly 5 percent of the total non-performing loans granted to small and medium enterprise owners who failed to meet their repayment obligations.
The sources explained that the Fund recently initiated judicial enforcement proceedings against approximately 110 defaulting entrepreneurs, based on financing contracts bearing executive enforceability. This legal status allows the Fund to take direct precautionary measures against borrowers who remain irregular or unresponsive in repaying their debts, reports Al-Rai daily.
These measures included coordinating with banks to seize account balances equivalent to the outstanding debt amounts, contacting the Ministry of Justice to activate procedures for the seizure of vehicles, and imposing travel bans on defaulters.
According to the sources, the total value of loans subject to legal collection procedures amounts to nearly 20 million dinars. As a result of these actions, the Fund has already secured substantial repayments, either deposited directly into its accounts or formally committed to be settled within a maximum period of 75 days.
They added that the Fund concluded debt restructuring agreements with about 50 entrepreneurs included in the legal actions. These settlements are expected to accelerate repayments in the coming period, as an increasing number of borrowers seek to regularize their positions and avoid further legal consequences.
More than 45 percent of entrepreneurs facing enforcement actions have reached repayment agreements with the Fund. The sources noted that individual defaulted loans range between 30,000 and 400,000 dinars, with the largest group averaging approximately 150,000 dinars per borrower.
Under the settlement mechanism, borrowers are required to pay an initial amount equivalent to about 25 percent of their outstanding debt. The remaining balance is rescheduled over the legally permitted repayment period of up to 15 years, after which judicial enforcement measures are lifted.
The sources emphasized that the Fund has revised repayment mechanisms to allow beneficiaries to fully utilize the 15-year repayment period stipulated by law, excluding grace periods of up to three years and exceptional installment deferrals that extended for four years during the Covid-19 pandemic.
Fund officials, the sources said, are seeking to strike a balance between empowering entrepreneurs to stabilize their businesses and safeguarding the Fund’s financial sustainability. This approach aims to ensure continued support for viable projects, protect public funds, and maintain the Fund’s ability to finance new initiatives that contribute to economic development.
The Fund continues to engage with entrepreneurs willing to restructure their obligations, while pursuing legal action against persistent defaulters and those found in violation of financing regulations, including deficiencies in the quality and reliability of submitted financial data. Legal warnings have also been issued to another segment of borrowers subject to such violations.
According to official figures, the Fund currently oversees around 1,040 active projects across various economic sectors, with total financing reaching approximately 203 million dinars. Commercial and service projects each account for about 40 percent of the total, while industrial projects represent 14 percent, crafts 4 percent, and agricultural activities about 2 percent.
