Credit guarantee scheme

Credit risk - risk management.

(CGS).

Public credit guarantee schemes are a form of government intervention to support small and medium enterprises (SMEs).

A credit guarantee scheme provides credit risk mitigation to lenders through the absorption of a portion of the lender’s losses on qualifying loans made to SMEs in case of default, typically in return for a fee.

(Source: World Bank.)

See also

• Credit Guarantee Scheme - UK
• Credit risk
• Default
• Guarantee
• Risk management
• Small and Medium-sized Enterprises (SMEs)
• World Bank