Pristina, May 14, 2018 – The Kosovo Credit Guarantee Fund (FKGK), today, signed an increase of guaranteed limit with TEB Bank.
The TEB is among the first Banks that has utilized the total allocated limit. The usage of the facility provided by FKGK has enabled the Bank to obtain additional collateral security for loans issued to viable micro, small, and medium enterprises (MSMEs) that might not have been quite qualified without the guarantee to receive a loan, hence providing easier access to finance for Kosovar companies.
The agreement for new limit aims to further increase lending for Kosovar businesses, contribute to the job creation, economic growth, as well as enhance opportunities for underserved economic sectors and populations including women, minorities, farmers, entrepreneurs, and youth. We believe that the limit increase for the TEB will boost further the contribution of the Bank toward the guarantee portfolio development and the achievement of the agreement aims.
Total amount of approved loans by all Banks that were submitted under guarantee coverage reached already around EUR 45 million distributed in 1,212 loans.
What is the procedure for businesses to benefit from it? Businesses will apply for a loan at a bank as usual, going through the bank’s procedures. If the value of the prospective borrower’s mortgage/collateral is not sufficient, the bank may decide to qualify the business and issue the loan, using the KCGF guarantee. Businesses will not approach the KCGF to request the guarantee.
The signing ceremony took place at the FKGK offices located at Anton Cetta Str. 5A in Pristina.