For entrepreneurs, access to credit is a critical factor in the growth and success of their businesses.  In a milestone achievement for Kosovo’s small- and medium-sized enterprises, the European Investment Fund (EIF) recently agreed to re-guarantee 50 percent of the Kosovo Credit Guarantee Fund’s (KCGF) credit portfolio.  

Launched with USAID assistance in 2016, KCGF is contributing to greater access to financing, which is a key constraint to economic growth in Kosovo.  KCGF, which is now locally run and financially self-sustaining, provides a partial loan guarantee that helps banks reduce their risk and collateral requirements.  KCGF has signed agreements with 90 percent of Kosovo’s banking-sector institutions, including seven commercial banks and one non-bank financial institution.

The signing ceremony for the re-guarantee agreement, which took place on May 16, marked the third anniversary of KCGF’s activities.  To date, KCGF has facilitated the issuance of 2,707 loans valued at more than $110 million.  This capital will help businesses create over 3,700 new jobs.