Credit guarantees have always been at the core of ACGF’s activities in Afghanistan. Through the provision of credit guarantees to PIs, ACGF is effectively de-risking lending operations and ultimately increasing PIs’ willingness and ability to lend to MSMEs. Enhancing access to affordable finance for MSMEs, on the other hand, fosters investment in the private sector of Afghanistan, ultimately contributing to employment and overall economic development.
Due to recent events in Afghanistan, new guarantee issuance is currently suspended, while existing guarantees are being administered through adjusted processes and procedures. ACGF actively engages with international donors for further support to resume its guarantee operations.
ACGF’s credit guarantees alleviate the constraints that typically hinder MSME borrowers’ access to adequate financing such as:
Micro, Small & Medium Enterprises:
Enhanced access to finance
Increased lending volume with a decreasing risk exposure
These benefits make ACGF’s credit guarantees a valuable tool that is well-suited for the development of the financial sector in the challenging economic context of Afghanistan.