16 June 2017

FKGK Signed the Guarantee Agreement with Banka Kombëtare Tregtare Kosovo Branch

FKGK Signed the Guarantee Agreement with Banka Kombëtare Tregtare Kosovo Branch

Pristina, Jun. 16, 2017 - The Kosovo Credit Guarantee Fund (FKGK), today, signed a guarantee agreement with Banka Kombëtare Tregtare Kosovo Branch. The agreement will enable the BKT to obtain additional collateral security for loans issued to micro, small, and medium enterprises (MSMEs), hence providing the easier access to finance for Kosovar companies.

The agreement aims to increase lending for Kosovar businesses, contribute to the job creation, economic growth, as well as enhance opportunities for underserved economic sectors and populations including women, minorities, farmers, entrepreneurs, and youth.

The BKT is the seventh Bank that has signed the guarantee agreement with FKGK. We believe that the agreement with the BKT will boost the contribution of the Bank toward the guarantee portfolio development and the achievement of the agreement aims.

Total amount of approved loans by Registered FI that were submitted under guarantee coverage reached already around EUR 13 million distributed in 300 loans.

What is the procedure for businesses to benefit from it? Businesses will apply for a loan at a bank as usual, going through the bank's procedures. 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 the loan, using the KCGF guarantee. Businesses will not approach the KCGF to request the guarantee.

The signing ceremony took place at the FKGK offices located at Anton Cetta Str. 5A in Pristina.