Guarantee funds – a response to agricultural credit risk

Guarantee funds – a response to agricultural credit risk
N°44

High risk levels is often the justification given for the small sums available for agriculture credit in the global South. Setting up a guarantee fund is one of the ways of managing and sharing these risks between the different stakeholders as well as facilitating greater involvement of financial institutions in the rural sphere. With this in mind, SOS Faim created a guarantee fund for the Andean countries in close collaboration with local producer and microfinance organizations.

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