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Good practice Imported

Kosovo Credit Guarantee Fund — Targeted Guarantee Windows Pulling First-Time Borrowers into Formal Credit

Kosovo · Prishtina · See the Kosovo profile · See the Prishtina profile

Evidence: Observational / pre–post Top 27% 76/100 · Ask Evidence Copilot about this practice

Kosovo's Credit Guarantee Fund has backed over €1 billion in MSME loans since its 2016 launch; an ILO-evaluated Sida-funded guarantee window targeting women-led, export-oriented and green businesses found 41% of borrowers accessed formal credit for the first time.

€1 billion+
MSME loans guaranteed since inception (2016–2025)
41%
Borrowers accessing formal credit for the first time (Sida-backed window)
Kosovo Credit Guarantee Fund — Targeted Guarantee Windows Pulling First-Time Borrowers into Formal Credit

Details

Maturity
Established
Promoter
Kosovo Credit Guarantee Fund (KCGF)
Period
2016–2025
Keywords
SME finance, credit guarantees, financial inclusion, women's economic empowerment, green finance

Context

Established in January 2016, the Kosovo Credit Guarantee Fund (KCGF) shares up to 50% of the credit risk with partner financial institutions to expand lending to micro, small and medium enterprises that lack sufficient collateral, capitalised initially by USAID and later by Germany's KfW and Sweden's Sida.

Results

By 2025 KCGF had guaranteed more than €1 billion in MSME loans since inception; an ILO baseline study of the Sida-backed re-guarantee window targeting women-led, export-oriented and green-investment firms found 41% of participating borrowers accessed formal credit for the first time.

Implementation

Indicative cost
High (€500k–€5M)
Time to results
Long (> 3 years)
Staffing & skills
KCGF credit risk-sharing team, partner financial institution loan officers

Conditions for success

  • sharing up to 50% of credit risk with partner financial institutions to expand lending to collateral-poor MSMEs
  • layering thematic guarantee windows for women-led, export-oriented and green-investment firms onto the core facility

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