Success stories Reports
Support to Establishment and Operation of a Loan Guarantee Fund (S-LGF), financed by DFID (Aug 2004-Feb 2006)
 
The main objective of the Loan Guarantee Fund is to support sustainable economic growth by facilitating access to credit sources for rural citizens who wish to start or develop a private business.

 

The main activity of the LGF consists in provision of partial guarantees to rural businesses applying to participating financial institutions (PFIs) to cover commercial risk associated with the final borrower. The loan guarantees provide access to PFIs credit sources to a greater number of rural entrepreneurs who otherwise could not obtain a credit due to the insufficiency of collateral.