Kosovo Credit Guarantee Fund (KCGF) is an independent and self-sustainable institution that, shares the risk through credit guarantee with the Financial Institutions for micro, small and medium-sized enterprise loans (MSMEs).

The purpose of KCGF is to support the private sector in Kosovo by expanding access to finance for MSMEs, thereby enabling job creation, increasing local production, improving the trade balance and enhancing opportunities for underserved economic sectors.

The Government of Kosovo through the Ministry of Trade and Industry, the US Agency for International Development (USAID) and the German Development Bank KfW are founders of KCGF. These institutions are also donors of KCGF’s initial capital.

• Swedish International Development Cooperation Agency – SIDA (as a counter guarantor); 
• World Bank 
• European Investment Bank  
• European Investment Fund – EIF  (as a counter guarantor), and 
• Millennium Foundation Kosovo-MFK (technical assistance for the development of renewable energy products and project finance) 

Financial Partner Institutions of Kosovo Credit Guarantee Fund are: Banka Ekonomike J.S.C., Banka Kombëtare Tregtare, Banka për Biznes J.S.C., NLB Banka J.S.C., ProCredit Bank Kosovo J.S.C., Raiffeisen Bank Kosovo J.S.C., TEB JSC.,  Raiffeisen Leasing Kosovë, AFK, Finca, KEP TRUST, KRK.

For more info: https://www.fondikgk.org/en/our-partners?

KCGF may register lending Financial Institutions (Banks, Micro Financial Institutions, Non-Financial Banking Institutions) that are licensed by the Central Bank of Kosovo and which meet the criteria set by KCGF: https://www.fondikgk.org/en/financial-institutions-registration-criterias/ .

The credit guarantee of KCGF is a guarantee for financial partner institutions to share the risk for micro, small and medium-sized enterprise loans (MSMEs).

The KCGF guarantee covers the principal only. It does not cover interest or other amounts owed to or other costs incurred by the lender.

KCGF guarantees will be issued up to 50% of the principal of the loan for MSMEs not exceeding the amount of  500,000 euro guarantee.  In specific windows and for certain guarantee values it is offered higher %  coverage 

KCGF does not issue loans nor grants.

KCGF is a guarantee institution.

11. Who benefits from the KCGF credit guarantee?

SMMEs that qualify for credit guarantee are all businesses fulfilling respective loan criteria from financial institutions but facing certain difficulties in access to finance due to the lack of collateral or those with no credit history or businesses considered at high risk by financial institutions.

MSMEs that qualify for the credit guarantee may be the ones that meet the conditions below: 

• Privately owned MSMEs, with no government ownership during the period of the credit guarantee coverage.
• MSMEs that have business registration and Identifying Unique Number and or farmers equiped with an Farm Certificate Number ( NIF).
• An eligible borrower must be at least (50%) owned by private citizens or permanent residents of Kosovo
• MSMEs that have less than 250 employees,
• Private micro, small and medium enterprises (MSMEs), which are not prohibited by applicable legislation, regulatory provisions, or international treaties to which Kosovo is a party.

MSMEs are enterprises which have no more than 250 employees.

KCGF guarantees credits to all economic sectors that are not prohibited by law (for prohibited sectors see: https://www.fondikgk.org/en/prohibited-credit-sectors-and-purposes?).

The maximum exposure of the guarantee that KCGF can offer to the borrower or the related group of borrowers will be 500,000 euro, while the maximum credit exposure amount will be 5 (five) million euro. 

The maximum repayment period of the guaranteed loan will be 120 months.

The types of financing that can be guaranteed are: loans, lines of credit, overdrafts and financial leasing.

Long-term and short-term investment loans for business needs that are not part of the exclusion list (see https://www.fondikgk.org/en/prohibited-credit-sectors-and-purposes?)

No, private purpose loans do not qualify for credit guarantees, only business purpose loans can qualify.

Yes, traders and craftsmen, self-employed persons and farmers can benefit from the KCGF guarantee as long as they are registered in the Kosovo Business Registration Agency (KBRA), as well as the farmers with Farm Certificate Number. 

Yes, a business owner who owns multiple firms may benefit from KCGF guarantees provided that the maximum credit exposure of the related parties of 5 (five) million euro and the maximum guarantee amount of 500,000 euro is not exceeded. 

No, it cannot. A loan can only be covered by one guarantee scheme.

Yes, it can as far as the maximum credit exposure of related parties does not exceed 5 (five) million euro and the maximum guarantee amount does not exceed 500,000 euro. 

KCGF allows start-up loans to be guaranteed. One of KCGF’s main goals is to improve access to finance for underserved companies and segments. For this purpose, KCGF offers the guarantees for loans of newly opened companies.

The potential borrower (MSME) can not apply for a guarantee, instead, the MSME applies for a loan at one of the KCGF’s Partner Financial Institutions (see answer to point 5). The Partner Financial Institution after performing the usual credit analysis by applying its approval standards, and if the company meets the KCGF criteria then the relevant Financial Institution itself will place the loan under the KCGF credit guarantee.