Financial services to promote employment in the agricultural sector

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The KCGF (Kosovo Credit Guarantee Fund) is a legal entity that stimulates lending by providing guarantees to MSMEs (micro, small and medium-sized enterprises). This project aims to create a new funding window within the existing credit guarantee fund that specifically addresses the needs of the agricultural sector. The immediate aim of the measure is to improve lending to MSMEs in the agricultural sector and farms. Targeted support for the agricultural sector - especially small farmers - is intended to increase their competitiveness and improve the income and employment situation, particularly in rural areas. This is done through loan guarantees to MSMEs in the agricultural sector and farms via microfinance institutions and banks. We expect this to create additional jobs, particularly for the younger generation threatened by rural exodus and migration. The aim is to create future prospects in the home country. The target group of the fund are people whose personal future prospects and income are directly linked to the economic situation of the MSMEs in the agricultural sector or of the farms. The focus here is primarily on small farmers. Companies in the agricultural sector generally need long-term financing for investments and short-term working capital loans to meet their investment needs. However, they generally do not have sufficient credit collateral. The seasonal cyclical cash flow of agricultural businesses requires financing products that are adapted to this, and so far only exist to a limited extent.