Parliament on Friday approved a draft law establishing a loan guarantee fund, with 70.2 percent of MPs voting in favor of it.

The draft was prepared in the framework of supporting small- and medium-sized businesses. Citizens who are interested in starting their own businesses often find they are unable to get loans from commercial banks because they lack collateral.

Most loans to small- and medium-sized businesses are made through commercial banks, which require collateral, usually in the form of property, before granting loans. The law addresses that issue by establishing a fund that can guarantee loans for borrowers with insufficient collateral.