Development Credit Authority – Loan Portfolio Guarantee

The Development Credit Authority (DCA) increases access to credit for the agricultural sector and business startups by providing a 50% risk guarantee on loans extended by three banks: 1) TEB Bank, 2) Raiffeisen Bank, and 3) Banka Ekonomike.

The DCA agreements are structured as follows:

-       TEB Bank is provided a 50% guarantee when extending loans to the agriculture sector in Kosovo.  The DCA covers 50% of losses incurred on a portfolio of loans up to a maximum value of $2,500,000.  Individual loans posted under the guarantee are limited to $300,000.

-       Raiffeisen Bank (RBKO) and Banka Ekonomike (BE) are provided a ‘shared’ DCA guarantee on loans extended to business start-ups, defined as enterprises registered for less than 24 months.  The DCA covers 50% of losses incurred on a combined portfolio of up to $2,075,240.  Each bank is designated a maximum portfolio ceiling of $1,037,620. However, if one of the banks does not lend to the maximum ceiling, the unused portion can shift to the other bank so that full utilization of the DCA is achieved.  Individual loans posted under the guarantee may not exceed $75,000.

USAID/Kosovo developed a loan portfolio guarantee to increase access to finance for micro, small, and medium enterprises in agricultural value chains, and loans to business startups.  These DCA guarantees give banks the incentive to lend to business startups and agribusinesses, especially young entrepreneurs and farmers, who would otherwise find it difficult or impossible to obtain financing. They also assist Kosovo’s financial sector to introduce new products tailored to meet the needs of start-ups and agricultural businesses. Support for these developing businesses demonstrates that these sectors can be profitable. 


•           DCA for business startups with RBKO and BE utilized by 8% with a total of 8 loans

•           DCA for agriculture with TEB banks utilized by 70% with a total of 249 loans and an average loan size of $ 7,000

Project Duration: September 2011 - September 2018

USAID Contact:    Besa Ilazi

Partners:              TEB Bank, Banka Ekonomike and Raiffeisen Bank.


Last updated: December 27, 2013

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