Garantifasiliteter

Garantifasiliteter, also known as guarantee facilities, are financial instruments used by banks and financial institutions to provide credit to their clients. These facilities are designed to offer a safety net for the borrower, ensuring that the lender's exposure to risk is minimized. Garantifasiliteter typically involve a third party, such as a guarantee fund or a government agency, which agrees to cover a portion of the loan if the borrower defaults. This arrangement helps to build trust and confidence between the lender and the borrower, making it easier for the lender to extend credit. Garantifasiliteter can be particularly useful in markets where credit is scarce or where borrowers have limited collateral. However, they also come with certain costs and risks for the lender, such as the potential for moral hazard and the need to manage the relationship with the guarantee provider. Overall, garantifasiliteter play a crucial role in the financial system by facilitating credit flow and supporting economic growth.