December 14, 2015, Pristina – The Kosovo Assembly approved the draft Law on the Establishment of the Kosovo Credit Guarantee Fund (KCGF). The Law provides a legal basis for the KCGF as one more component in the framework to address the problem of limited access to finance for micro, small, and medium size enterprises (MSMEs) in Kosovo. It foresees the establishment of the KCGF as a local, independent, sustainable credit guarantee facility which will issue loan portfolio guarantees to financial institutions, enabling them issue new loans and to increase the number and amount of loans granted to MSMEs, hopefully on better terms and conditions than presently available.
The KCGF capital will be funded by the Ministry of Trade and Industry (MTI) and international donors – including USAID, KfW, SECO. Following the adoption of the Law, the KCGF is expected to start operation as soon as possible, to ensure the effective allocation of the donor funds.
The Kosovo Credit Guarantee Fund is envisioned as a means that will positively impact the country’s economic growth as well as increase employment opportunities.