Credit Guarantee Fund III

active

The KCGF (Kosovo Credit Guarantee Fund) issues guarantees to local banks and microfinance institutions to partially cover the default risks of micro, small and medium-sized enterprises (MSMEs). This promotes access to financial services for the benefit of MSMEs. This follow-up project will increase the volume of the existing credit guarantee fund and create the potential to issue further loan guarantees. Within this objective, in addition to the general MSME support of the KCGF, the project includes three thematic funding areas. Targeted support for the agricultural sector - especially small farmers - is to increase their competitiveness and improve the income and employment situation, especially in rural areas. We expect this to create additional jobs, especially for the younger generation threatened by rural exodus and migration. In response to the economic consequences of the Covid-19 pandemic, the guarantee capital for a separate Covid-19 guarantee window was increased. With particularly flexible conditions, the financing of MSMEs can continue to be supported, jobs secured and investments in a sustainable economic recovery promoted despite increased risks. As part of the response to the pandemic, a Green Recovery Guarantee Window will also specifically promote MSME investments in energy efficiency, resource efficiency and renewable energies.