Pristina, January 20th, 2021 – Kosovo Credit Guarantee Fund (KCGF) signed the guarantee agreements with its Partner Financial Institutions for the guarantee windows within Economic Recovery Package.

Now, with the signing of guarantee agreements with the partner financial institutions, the implementation of the guarantee windows within Economic Recovery Package begins.

The guarantee windows within Economic Recovery Package (ERP) are new guarantee lines which aim to support Micro, Small and Medium Enterprises (MSMEs) through the credit guarantees.
This Package envisages increasing the coverage with a credit guarantee of up to 80% of the loan value and will also offer the opportunity to include farmers with a Farmer Identification Number (FIN).

Guarantee Windows within ERP will focus on lending support to the manufacturing, agribusiness, services, trade sectors, with a particular focus on women in business and start-ups.

ERP in this time of pandemic will have added value for both end beneficiaries (MSMEs) who will be able to access finance with better lending terms at the appropriate time, as well as for Partner Financial Institutions (PFIs) which will be able to share a large part of the credit risk with KCGF.

The guarantee windows within this Package are expected to support access to finance for MSMEs up to € 202 million over a one-year period.

What is the procedure to become a beneficiary of the ERP guarantee windows?

Businesses applies for the loans in the banks, as usual, going through all the bank procedures. If the value of the prospective borrower’s mortgage/collateral is not sufficient, the bank may decide to qualify the business and issue that loan, using the KCGF guarantee. Businesses cannot apply to the KCGF to receive the guarantee.