Prishtinë, February 28, 2019 – Kosovo Credit Guarantee Fund (KCGF) signed the first guarantee agreements for the Agro Window with ProCredit Bank, Banka për Biznes, Banka për Biznes, Banka Kombëtare Tregtare, NLB, TEB SH.A., Raiffeisen Bank Kosovo and Banka Ekonomike.
The Agro Window is a new guarantee line funded entirely from German Government, with the intermediary of German Bank for Development – KfW which aims to support agribusinesses by support of lending to this sector.
The guarantee line will operate within KCGF for a period of four years. Thanks to the support of KfW more favorable conditions for credit guarantees in the Agriculture sector will be provided.The guarantee line will enable banks to benfit more from collateral security for loans issued to micro, small and medium enterprises (MSME’s) that operate as a chain link in the Agricultural sector.
During these meetings, it was also discussed about the importance of the new line and the new guarantee agreement to extend the lending, thus providing easier access to finance for MSMEs with a focus on the Agriculture sector as one of the most important sectors in creating jobs and creating added-value in the economy.
Signing ceremonies were held at KCGF offices, while present were representatives of the German Embassy, KfW, USAID, Partner Banks and KCGF.
The total amount of loans approved by the banks and that have been filed under the guarantee coverage has already reached 93.7 million euros distributed in over 2,400 loans, while the investments made with these loans promised over 3,400 new jobs.
What is the procedure to take advantage of it? Businesses apply for bank loans as usual, passing all bank procedures. If the value of mortgage / collateral value of the borrower is not sufficient or the other conditions are not met, the bank may decide to qualify the business and issue the loan using the KCGF guarantee. Businesses can not apply to the KCGF to get the guarantee.