Project Objectives
The Action contributes to the general objectives of the Instrument, namely to support the SME segment in Eastern Partnership Countries through improving access to finance, in the form of enhanced lending terms and conditions, via providing first loss SME portfolio guarantees.
The main objectives pursued by the Action concern:
- Support to overcome the social and economic consequences of the Covid-19 pandemic;
- Enhance access to finance for SMEs as a result of reduced collateral requirements, lower financing costs and supporting access to finance in local currencies
- Provide response to the financial needs of business
Improved access to finance through first loss SME portfolio guarantees in order to enable local intermediary banks to take on more risk and reach out to underserved segments of the economy particularly during and aftermath of the Covid-19 pandemic.
The Action is designed to facilitate access to finance to SMEs in the selected countries, through the provision of a Guarantee Facility offering SME portfolio guarantees to local banks and other financial intermediaries, enabling them to enhance transaction terms and conditions.
