Are Public Credit Guarantees Worth the Hype?

4 Pages Posted: 17 Sep 2018 Last revised: 27 Apr 2020

See all articles by Facundo Abraham

Facundo Abraham

Independent

Sergio L. Schmukler

World Bank - Development Research Group (DECRG)

Facundo Abraham

World Bank

Date Written: November 1, 2017

Abstract

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 and Abraham, Facundo, Are Public Credit Guarantees Worth the Hype? (November 1, 2017). World Bank Research and Policy Briefs No. 121486, Available at SSRN: https://ssrn.com/abstract=3249563

Sergio Schmukler

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

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HOME PAGE: http://www.worldbank.org/en/about/people/s/sergio-schmukler

Facundo Abraham

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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