“KCGF was established in January 2016, based on the Law on the Establishment of the Kosovo Credit Guarantee Fund. The purpose of KCGF is to support the private sector in Kosovo by expanding access to finance for MSMEs, thereby enabling job creation, growth in local production, improvement of the trade balance, and the advancement of opportunities for underserved economic sectors. The founding law of KCGF was initiated by the Ministry of Trade and Industry, while its development was supported by USAID in Kosovo, through the EMPOWER Credit Support (ECS) Program. The law entered into force on January 23, 2016.”

“Additionality is the cornerstone of the KCGF (Kosovo Credit Guarantee Fund). This means that registered financial institutions (RFIs) would not grant a loan to an MSME (Micro, Small, and Medium Enterprise) without the provided guarantee – thereby "adding" a new client and contributing to economic growth. KCGF will achieve this additionality by encouraging new loans for target groups, leading to a significant increase in the volume of new loans, liquidity in the economy, as well as job creation.”