Access by MSMEs to Finance in the Southern and Eastern Mediterranean: What Role for Credit Guarantee Schemes?

MEDPRO Technical Report No. 35/April 2013

32 Pages Posted: 7 Jun 2013

See all articles by Rym Ayadi

Rym Ayadi

HEC Montreal ; HEC Montreal

Salim Gadi

Centre for European Policy Studies (CEPS)

Date Written: April 30, 2013

Abstract

Micro-, small- and medium-sized enterprises (MSMEs) in the Southern and Eastern Mediterranean suffer from credit constraints. Given their contribution to employment and growth, similarly as in other regions, policy-makers have developed credit guarantee schemes (CGSs) in order to facilitate small companies’ access to debt capital. CGSs are risk-sharing mechanisms under which a guarantor ensures the lender against a share of the possible losses it incurs when extending a loan. Despite the maturity of some schemes, knowledge of the schemes’ functioning, operating environment as well as performance in guaranteeing loans for MSMEs is scarce. Building on a previous study of CGSs in the region, this paper extends the available knowledge on the region’s schemes, building on the results of an exclusive questionnaire to gain insights into these mechanisms. First, the paper reviews the conditions of MSMEs’ access to finance in the Southern and Eastern Mediterranean; second, it presents the results of the questionnaire across a number of dimensions ranging from ownership to financial performance; and third, the paper presents some avenues for future policy research in this area.

Keywords: Micro-, small- and medium-sized enterprises, MSMEs, Southern and Eastern Mediterranean, developed credit guarantee schemes, CGSs

Suggested Citation

Ayadi, Rym and Ayadi, Rym and Gadi, Salim, Access by MSMEs to Finance in the Southern and Eastern Mediterranean: What Role for Credit Guarantee Schemes? (April 30, 2013). MEDPRO Technical Report No. 35/April 2013, Available at SSRN: https://ssrn.com/abstract=2275216

Rym Ayadi (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

Salim Gadi

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

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