A three-year EMPOWER Credit Support (ECS) Program that concluded in July 2017 established a local, independent, sustainable credit guarantee facility, the Kosovo Credit Guarantee Fund (KCGF). The Fund is designed to issue portfolio loan guarantees to financial institutions to cover up to 50 percent of the risk for loans and thereby increase lending to MSMEs.

Kosovo Credit Guarantee Fund (KCGF)

The KCGF works with financial institutions (banks, MFIs, NFBIs) donors, the Government of Kosovo, the Central Bank, and the MSME community to achieve the following objectives:

• Increase lending to MSMEs in Kosovo from the local financial institutions;
• Create jobs, increase local production and value-added services, improve the trade balance, broaden the tax base, strengthen the social safety net, and reduce poverty; and
• Enhance opportunities for underserved economic sectors and populations including women, minorities, farmers, and entrepreneurs.

The enabling Law on the Establishment of the Kosovo Credit Guarantee Fund was approved in the National Assembly and signed by the President of Kosovo. It was published in the Official Gazette on 8 January 2016 and came into effect on 23 January 2016.

The KCGF was established in April 2016 and is governed by a board of directors consisting of four independent members selected by the donors, two ex-officio members from the Ministries of Trade and Industry and Finance, and its managing director. KCGF reports to its Board of Directors.

KCGF has signed agreements with 7 commercial banks and the aggregated approved portfolio as of end of August 2017 was 17,041,600 euro distributed in 416 loans, whereas the total amount of guaranteed part was 8,263,720 euro. 

Partners: Kosovo Credit Guarantee Fund

Geographic target: Kosovo

Project Duration: June 2017–Decemeber 2018

Contact: Dardane Peja