ProCredit Bank Kosovo signed a guarantee agreement with the Kosovo Credit Guarantee Fund (KCGF), which will enable the bank to obtain additional collateral security for loans issued to very small, small, and medium enterprises (MSMEs).
The agreement aims to increase lending for Kosovar businesses, contribute to job creation and economic growth, as well as enhance opportunities for underserved economic sectors and populations, including women, farmers, entrepreneurs and youth.
The CEO of ProCredit Bank, Ilir I. Aliu, highlights the importance of this agreement in Kosovo: “This is good news, especially for the business community. "The signing of today’s contract also reflects the shared principles and goals of both institutions, the good co-operation and our joint commitment to promoting growth and employment by supporting very small, small and medium-sized enterprises.”
Businesses will apply for a loan at the bank as usual, and if the value of the prospective borrower’s mortgage/collateral is not sufficient or other terms are not fully met, the bank may decide to qualify the business and issue a loan using the KCGF guarantee. Businesses will not approach the KCGF directly to request a guarantee
