Credit Guarantee Facility Ghana

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With an FC grant of EUR 20 million, a new, independent institution is to be set up and capitalized as a subsidiary of the Ghanaian Development Bank (Development Bank Ghana, DBG) as part of the FC project Credit Guarantee Facility Ghana. The aim of the planned project is to set up and capitalize a credit guarantee facility (KGF) to improve the range of financial services available to MSMEs. These guarantees are intended to enable PFIs to finance MSMEs so that these companies can start new economic activities and generate additional income. The awarding of KGs is intended to promote the diversification and strengthening of the private sector as an important driver of Ghana's economic stability and development. In this way, the project not only contributes to the further development of the financial sector, but also increases economic power and thus helps to promote employment and reduce poverty. The recipient of the FC contribution is the Republic of Ghana, represented by the Ministry of Finance (MoF). The project sponsor will be the newly founded KGF. The project approach envisages close coordination with the World Bank (50 million US dollars to capitalize the KGF and 1.5 million US dollars for TA).