The Standard Window aims to support acces to finance for all sectors, which have a significant role in the country’s economy and are targeted by KCGF partner institutions.
Given that export is one of the main factors that affects the economic development of the country, FKGK aims that through this window stimulate this segment regardless of the level of exports that an enterprise may have, through offering credit guarantees with preferential rates.
Financial Partner Institutions of FKGK are such as: Banka Ekonomike Sh.A., Banka Kombëtare Tregtare, Banka per Biznes Sh.A., NLB Banka Sh.A., ProCredit Bank Kosovo J.S.C., Raiffeisen Bank Kosovo J.S.C., TEB Sh.A. and Raiffeisen Leasing Kosovo.
WHICH BUSINESSES QUALIFY?
MSMEs that qualify for guarantee financing include, but are not limited to the following:
Privately owned MSMEs, without any Government ownership during the loan coverage period from the guarantee;
- MSMEs that have business registration;
- A qualified borrower must own at least one private citizen or permanent resident of Kosovo;
- MSMEs with less than 250 employees;
- Have adapted an Environmental and Social Management System according to IFC/World Bank Standards, which will ensure that credits will meet environmental criteria
WHICH LOANS CAN BENEFIT FROM THE STANDARD WINDOW?
Qualified Loans fullfiling the following criteria will be eligible for Standard Window benefits:
The maximum loan amount is EUR 3,000,000;
- The maximum loan amount is EUR 3, 000,000 ( For Leasing maximum amount is 1,000,000 EUR)
- The maximum credit exposure is EUR 5,000,000
- The maximum amount of the guarantee is EUR 500,000;
- The maximum repayment period of the guaranteed loan is up to 120 months ( for Leasing the maximum maturity is 84 months)
- The purpose of the loan can be for long-term investments as well as for working capital.
WHAT ARE THE GUARANTEE FEATURES?
Guarantees will be provided for the amount up to 50% of the loan principal but not more than EUR 500,000.
- The maximum loss cap will be 100%;
- Type of guarantee: Revolving;
- Inclusion period: Two years (until October 31, 2024)
WHAT ARE THE BENEFITS OF THE GUARANTEE?
Increased access to finance;
- Favorable conditions for exporting businesses
- Potencially preferable interest rates
- Collateral reduction
- Faster processing time for loan applications
- Business Sustainability
For Financial Registered institutions
- Continuation of the guarantee scheme by a new capital from Government of Republic of Kosovo
- Credit risk reduction by;
- Capital relief
- Loss coverage
- Increased maximum guarantee amount
- Better conditions for businesses in export
- Increase of credit portfolio
- Increase incomes from other products
WHAT IS THE APPLICATION AND DECISION MAKING PROCESS?
- The potential borrower (MSME) does not apply for a guarantee but applies for a loan at one of the Financial Registered Institutions (see response to Intermediary item).
- The Financial Registered Institution after performing the usual credit analysis by applying the approval standards and if the company meets the KCGF criteria then the relevant FRI itself will place the loan under the KCGF credit guarantee.