Are Public Credit Guarantees Worth the Hype?

4 Pages Posted: 17 Sep 2018 Last revised: 29 Mar 2019

See all articles by Facundo Abraham

Facundo Abraham


Sergio L. Schmukler

World Bank - Development Research Group (DECRG)

Date Written: November 1, 2017


Public credit guarantees have become a popular instrument to try to expand lending to financially constrained firms. In many instances, these schemes have proven useful to increase access to finance. However, public interventions to extend guarantees need to be designed, evaluated, and monitored properly. Otherwise, they could prove unnecessary or bring about important costs, such as increased moral hazard or implicit subsidies.

Keywords: Private Sector Economics, Private Sector Development Law, Marketing, Labor Markets, Economic Growth, Finance and Development

Suggested Citation

Abraham, Facundo and Schmukler, Sergio, Are Public Credit Guarantees Worth the Hype? (November 1, 2017). World Bank Research and Policy Briefs No. 121486. Available at SSRN:

Facundo Abraham (Contact Author)


No Address Available

Sergio Schmukler

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN MC 3-301
Washington, DC 20433
United States
202-458-4167 (Phone)
202-522-3518 (Fax)


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