Agro Window
GUARANTEE TO CULTIVATE THE FUTURE!
A farmer may have opportunities to expand production, purchase new equipment, or invest in the storage and processing of agricultural products, but turning these opportunities into reality requires financing. For farmers and agribusinesses, investment is needed throughout the food value chain, from primary production to processing and marketing.However, financing agricultural activities presents specific challenges. The ability to provide collateral may be limited, whereas land in rural areas and agricultural machinery may have lower market values, reducing their value as collateral. At the same time, income from agricultural activities depends on seasonal cycles and may be affected by climatic conditions, making credit risk assessment more complex for financial institutions.To address these challenges, the Kosovo Credit Guarantee Fund (KCGF) established the Agro Window in 2018, with support from the Government of the Federal Republic of Germany through capital provided via KfW. The Window supports farmers, agribusinesses and micro, small and medium-sized enterprises (MSMEs) operating in the agricultural sector.Through its credit guarantee, KCGF shares a portion of the credit risk with partner financial institutions, increasing their capacity to finance investments and working capital needs. This financing may cover equipment and machinery, production and storage facilities, irrigation systems, and investments in agricultural processing.In this way, the Agro Window helps address some of the specific barriers to financing in the agricultural sector and creates more opportunities for investment throughout the food value chain. By supporting access to finance for farmers and agribusinesses, it aims to contribute to increased domestic production, rural development, job creation and reduced dependence on food imports.
WHO CAN BENEFIT?
The Agro Window is intended for farmers, agribusinesses and MSMEs operating in the agricultural sector that meet the eligibility criteria.
| Criterion | Requirement |
|---|---|
| Business status | Micro, small or medium enterprise, or farmer |
| Registration | MSME registered with the Kosovo Business Registration Agency (KBRA), or farmer holding a Farmer Certificate with a Farmer Identification Number (NIF) |
| Ownership | Privately owned |
| Number of employees | Less than 250 employees |
| Sector | Agriculture and related activities in the agricultural sector |
| Value chain | Activities from primary agriculture to agri-food processing |
GUARANTEE FEATURES
The Agro Window offers terms tailored to the sector's needs, enabling financing for working capital, fixed assets and capital investments.
| FEATURE | TERMS |
|---|---|
| Guarantee coverage | Up to 60% |
| Minimum loan amount | EUR 3,000 |
| Maximum loan amount | EUR 3,000,000 |
| Maximum guarantee amount | EUR 500,000 |
| Maximum loan maturity | 120 months |
| Loan purposes | Working capital, fixed assets and capital investments |
ADDED VALUE
The Agro Window creates value for both sides of financing: farmers and agribusinesses seeking capital for development, and financial institutions financing a sector with a specific risk profile.
| FOR MSMES AND FARMERS | FOR FINANCIAL INSTITUTIONS |
|---|---|
| Improved access to finance | Reduced credit risk |
| More favourable financing terms | Reduced cost of risk |
| Reduced collateral requirements | Faster loan processing |
| Support for working capital and investments | Opportunities to expand the loan portfolio |
| Financing across the agri-food value chain | Expanded financing for an important economic sector |
| Support for agribusiness development and sustainability | Potential to expand the portfolio and increase income from financial products |
The Agro Window connects farmers and agribusinesses financing needs with financial institutionscapacity to support the sector. By sharing risk with KCGF, it creates more opportunities for investment across the entire agri-food value chain.
HOW THE GUARANTEE SCHEME WORKS
KCGF has no direct contact with borrowers.Communication with the borrower takes place through the Registered Financial Institution.
Responsibilities and monitoring
KCGF operates on the premise that the RFI will conduct an appropriate credit risk assessment and verify the eligibility of the borrower and the loan.To monitor and oversee the performance of each participating RFI, KCGF has developed two monitoring mechanisms: