Export Window
GUARANTEE FOR EXPORT GROWTH!
For Kosovo’s economy, export growth is important for strengthening domestic production, creating jobs, and increasing revenues from international markets. In an economy characterized by a high trade deficit, expanding export capacity of domestic businesses can contribute to narrowing this deficit and strengthening Kosovo’s position in foreign markets.However, for businesses seeking to enter new markets or expand their exports, increasing capacity often requires substantial investment. In addition to financing for equipment, technology and production capacity, businesses need working capital to cover the period between production, order fulfilment and receipt of payment from customers. International market requirements relating to standards, certifications, quality and reliable supply capacity may further increase 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 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 of exporting businesses. This can enable enterprises to increase capacity, modernise processes, meet international market requirements and expand their export activities.In this way, the Export Window links financing to the need to strengthen the export capacity of domestic businesses. By facilitating access to financing for investments and working capital, KCGF aims to help more businesses compete in international markets, increase exports and contribute to strengthening domestic production and narrowing the 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: