Linking Financial Service Providers to Commercial Capital : How Do Guarantees Add Value?
In microfinance, experimentation with loan guarantees began largely as an attempt to demonstrate to local banks that Microfinance Institutions (MFIs) are creditworthy. Though loan guarantees are far less common than other funding instruments, such...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/05/9648212/linking-financial-service-providers-commercial-capital-guarantees-add-value http://hdl.handle.net/10986/9516 |
| Summary: | In microfinance, experimentation with
loan guarantees began largely as an attempt to demonstrate
to local banks that Microfinance Institutions (MFIs) are
creditworthy. Though loan guarantees are far less common
than other funding instruments, such as debt, equity, and
grants, they are beginning to be used more often. This brief
is based on a joint Consultative Group to Assist the Poorest
(CGAP)/United States Agency for International Development
(USAID) study of 96 transactions executed by eight guarantor
agencies between 1988 and 2005, with most transactions made
after 2000. |
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