Export Window
GUARANTEE FOR EXPORT GROWTH!
In a economy characterized by a large trade deficit, strengthening the export capacity of domestic businesses can help reduce this deficit and strengthen Kosovo’s position in international markets.
However, businesses seeking to enter new markets or expand their exports often need substantial investment to increase their capacity.
In addition to financing for equipment, technology and production capacity, businesses need working capital to bridge the period between production, order fulfilment and payment collection from customers. International market requirements relating to standards, certifications, quality and reliable supply capacity can further increase their financing needs.
To support these needs, the Kosovo Credit Guarantee Fund (KCGF) launched the Export Window in late 2022, with support from the USAID Compete Activity. Through credit guarantees, KCGF shares a portion of the credit risk with partner financial institutions, creating greater scope to finance investments and working capital needs of exporting businesses. This can enable enterprises to increase capacity, modernize processes, meet international market requirements and expand their export activities.
In this way, the Export Window connects access to finance with the need to strengthen the export capacity of domestic businesses. By facilitating financing for investments and working capital, KCGF aims to support more businesses in competing internationally, increasing exports and contributing to stronger domestic production and a narrower trade deficit.
WHO CAN BENEFIT?
The Export Window is intended for MSMEs that engage in or seek to expand export activities and meet the eligibility criteria.
| CRITERIA | REQUIREMENT |
|---|---|
| Business status | Micro, small or medium enterprise |
| Registration | Business registered in Kosovo |
| Ownership | Privately owned |
| Number of employees | Fewer than 250 employees |
| Business profile | Manufacturing and service businesses |
| Focus | Businesses with export activities or export potential |
GUARANTEE FEATURES
The Export Window offers terms tailored to the needs of exporting MSMEs, enabling financing for investments and working capital and providing greater guarantee capacity
| FEATURE | TERMS |
|---|---|
| Guarantee coverage | Up to 50% |
| Minimum loan amount | EUR 3,000 |
| Maximum loan amount | EUR 3,000,000 |
| Maximum guarantee amount | EUR 1,000,000 |
| Maximum credit exposure | EUR 7,000,000 |
| Maximum loan maturity | 120 months |
| Loan purposes | Working capital and capital investments |
ADDED VALUE
The Export Window creates value both for MSMEs seeking to expand their export activities and for financial institutions financing businesses targeting international markets.
- Improved access to finance
- More favourable financing terms
- Reduced collateral requirements
- Support for investments and working capital
- Support for expansion into international markets
- Reduced credit risk
- Reduced cost of risk
- Opportunities to expand the loan portfolio
- Faster loan processing
- Opportunities to develop financial products for the export segment
The Export Window connects the ambition of Kosovo businesses to compete in international markets with financial institutions' capacity to support their growth. By sharing risk with KCGF, it creates more opportunities for investment, production and export expansion.
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: