Workshop on Credit Risk Assessment for Loan Guarantees

Over the years, governments across the globe have increasingly used loan guarantees, Public-Private Partnerships (PPPs), guarantees extended to small and medium-sized enterprises (SMEs) to help the public and private sector institutions meet their financing requirements. Loan guarantees have been utilised by governments with different motives such as lowering the borrowing costs of the borrower institutions, keeping recipient firms alive and preventing increases in unemployment, while export credit guarantees are aimed at supporting exporters to increase their international competitiveness. In addition to loan guarantees, there has been increased use of on-lending facilities.