Credit guarantee schemes for SMEs – an international review

In view of the growing interest in microfinance, small enterprises with growth potential, as opposed to microenterprises, may be missing out on donor credit programmes.Credit guarantee schemes can be seen as filling this gap, since they are aimed at the SME sector, and are intended to help banks learn about lending to SMEs, while being cushioned from the risks involved. This article describes how credit guarantee schemes are being implemented all over the world, and points to some of the problems faced, as well as the advantages of such schemes.