Small & Medium Enterprises (SME) Credit Project

closed

Closed

The Pilot Small and Medium Enterprise (SME) Credit Line Project, will provide financing to SMEs on market-based terms, re-install production, and economic activity of the private sector, and, reinforce reforms to ignite financial sector development, and institutional framework to re-establish basic credit management capacity, and loan administration. The project has two components: 1) The credit line component will enable emergency financing for needed inputs, and repairs to allow the development of S&M private enterprises in Kosovo, and re-start/expand operations. The line of credit will finance purchases of equipment, and raw materials, as well as repair of facilities. Initially, the Interim Credit Unit (ICU) will finance viable private SMEs, to later transfer lending activities to the participating banks, as the banking sector develops in Kosovo. This includes credit risk analysis, verification of data assumptions through electronic searches, and of management/owners past record history. 2) The administration and management of the ICU will be entirely financed by the European Agency for Reconstruction, managed as a turnkey operation. It will monitor the co-financed SME credit line, through a financial management system, consistent with the Bank's requirements, and, will focus on credit management lending to SMEs. Participating banks will be provided with technical assistance, and training in credit risk evaluation.

FY17 - Industry, Trade and Services

World Bank Group

Project

Government