The Afghanistan Credit Support Program (ACSP), implemented by Deutsche Investitions- und Enwicklungsgesellschaft mbH (DEG), is a three-year project (ending in FY 08) designed to support the establishment of a sound, well-functioning, private financial sector through the creation of a permanent guarantee facility for Afghanistan. The established facility offers guarantees for loans issued by commercial banks to Afghan small and medium enterprises (SMEs). In addition to loan guarantees, the program provides technical assistance to its partner banks in the basics of SME lending. By offering the loan guarantees and strengthening the banks’ SME lending capacity, ACSP encourages increased bank lending to the sector. By the end of FY 07, ACSP aims to have guaranteed 342 loans for the total value of $6.6 million.