Kreditgarantier

Kreditgarantier are financial guarantees provided by a guarantor, often a government agency or a specialized financial institution, to cover a portion of a borrower’s obligation. The guarantee promises to pay the lender if the borrower defaults, reducing the lender’s risk. The guarantor does not usually provide the loan itself; it backs a portion of the loan or a specific performance obligation.

The main purpose of credit guarantees is to facilitate access to credit, particularly for small and medium-sized enterprises, export finance, infrastructure projects, or other activities that may be perceived as riskier by lenders. By sharing or transferring credit risk, guarantees can improve lending terms, lower collateral requirements, and broaden the pool of eligible borrowers. They are common tools in public development finance and export credit programs, as well as in private debt markets through guarantee subsidiaries or programs.

Guarantees come in various forms, including unconditional or conditional, and may cover loan principal, interest, or performance obligations. They can be provided for individual transactions or as portfolio guarantees that back a group of loans. Terms typically specify the guaranteed percentage, maximum exposure, fees, and conditions for drawdown. The guarantor conducts credit assessment and ongoing monitoring, and the lender retains some risk and oversight responsibilities.

Risks and considerations include fiscal exposure for the guarantor, potential moral hazard, and the need for proper pricing and risk management. For borrowers and lenders, guarantees can alter incentives and covenants and influence capital requirements and borrowing costs. The specific design and regulation of kreditgarantier vary by jurisdiction, often reflecting public policy goals and state aid rules.