Pristina, April 26, 2016 – The Kosovo Credit Guarantee Fund (KCGF) was launched today during a ceremony organized by the USAID|Kosovo and the Government of Kosovo. This marks the establishment of an independent, local, and sustainable institution that will issue portfolio loan guarantees to financial institutions thereby increasing access to finance for the Micro, Small, and Medium Enterprises (MSMEs) in Kosovo.
Among the main obstacles to the development of MSMEs and job creation in Kosovo is inadequate access to finance for manufacturing companies, services providers, and agricultural businesses. In addition, many of these businesses, especially the women-owned, have limited or no property that may be used as collateral for obtaining loans.
The Kosovo Credit Guarantee Fund (KCGF) will provide a guarantee for eligible business loans to qualified borrowers. KCGF, established by law in January 2016, will cover up to 50% of the risk of the loans with the aim to facilitate the private sector development and increase access to finance for MSMEs. KCGF guaranteed loans will help especially farmers, entrepreneurs, women-owned businesses, and minority-businesses to expand, increase domestic production, create jobs, and improve the national trade balance. During this event, the U.S. Ambassador to the Republic of Kosovo H.E. Greg Delawie, while stating the benefits of KCGF, highlighted that the U.S. remains committed to support Kosovo’s economic empowerment.
Efforts to capitalize the KCGF are underway with funding commitments from USAID, and other international donor agencies (KfW, SIDA) and the Government of Kosovo, through the sponsoring Ministry of Trade and Industry (MTI).
