Publications - Collateral, Guarantee Funds and Mutual Guarantee Associations
For those documents that are not available for download
in PDF, please contact the Social Finance Programme secretariat for a copy: SFP@ilo.org
Guarantee Funds for Small Enterprises A manual for guarantee fund managers. Linda Deelen & Klaas Molenaar, 2004
Guarantee funds for small enterprises serve to make bank loans more accessible for small entrepreneurs. Many viable projects do not get funded because there is no or not enough collateral. As a result no investment is undertaken, and no jobs are created. Guarantee funds can help here. They offer risk-sharing whether guarantee funds work or not depends largely on their design, i.e. how incentives and sanctions are set and how the fund is governed. Critical are risk sharing arrangements, eligibility criteria, staffing, internal reporting and control systems.
WP 26: Collateral, collateral law and collateral substitutes
(Second edition - 2001) - (pdf 188 Kb)
B. Balkenhol & H. Schütte
This
work ties together ongoing conceptual and field work on collateral law and
substitution, it identifies the issues, relevant for policy-making and
institutional learning and makes recommendations for donor agencies interested
in the financial sector in developing countries and transition economies. The
ultimate goal of this report is to influence policies, the regulatory framework
and institutional behaviour with a view to innovative and effective collateral
substitution. This could contribute to removing what is considered to be an
important obstacle in the access of the poor to financial services.
Making Guarantee Funds work for Small and Micro-enterprises. Training manual. S. Gray, T. Mahieux, G. Reyes, P. van Rooij, & J. Roth. Turin: ILO, 2000.
The manual covers all critical areas of guarantee fund management. It is primarily targeted at practitioners working with decentralised guarantee schemes. The manual deals with: credit transactions and credit institutions; financial landscape and stakeholders; different models of guarantee funds; the life cycle of a guarantee; eligibility criteria; marketing; risk sharing; fees; staffing; fund investment; accounting procedures; performance indicators; capitalisation and financial sustainability.
(Priced publication $50.-)
WP24. Institutional assessment for NGOs and self-help organisations managing guarantee schemes.
The tool is primarily designed for guarantee schemes managed by non-governmental organisations and self-help organisations. These institutions are neither specialised financial institutions nor subject to supervision by a Central Bank or a similar authority, but that provide risk-sharing services efficiently because of their close proximity to clients and related information advantages.
Asian Experiences on Collateral Substitutes: Breaking Barriers to Formal Credit. Monograph. Llanto, Balkenhol, Zilkifli, et al. 1996.
The book is a summary of country papers on the experiences of lending institutions in Indonesia, Malaysia and Thailand in identifying, testing and reviewing different models of collateral substitution, like joint liability, prior deposits, jewellery and household appliances, promissory notes etc. The papers were prepared in the framework of an action research project carried out by the Social Finance Programme in cooperation with the Asia Pacific Rural and Agricultural Credit Association and SDC (Swiss Development Cooperation).
WP18. Guarantee Funds and NGOs: Promise and Pitfalls A Review of the key Issues, Michiel Bastiaenen, Peter van Rooij, 1997.
This document shows the full range of different types of guarantee funds, namely small guarantee mechanisms operated by NGOs comprising private voluntary organisations (PVOs) and self-help or member-controlled organisations (SHOs).
The document is addressed to NGOs which are operating small, decentralized guarantee schemes or are considering doing so. For NGO managers it should be a tool to identify areas in which institutional upgrading may be required. This guide will also be useful for donor agencies which support NGOs in micro finance.
It draws on experiences with six NGO/SHO managed guarantee funds: MCCH (Ecuador), CIPDEL (Peru), UGC (Mozambique), ORAP (Zimbabwe), CSC de Gitarama (Rwanda) and PRDA (Sri Lanka).
Revolving Loan and Guarantee Funds - Checklist for a Better Design and Management of Revolving Loans and Guarantee Funds in ILO Technical Cooperation Programmes - (pdf 468 Kb)
ILO.
Many project designers consider the creation or support of credit facilities as part of their technical cooperation programmes. This checklist will help them to verify whether credit mechanisms such as revolving loan and guarantee funds are indeed appropriate instruments in a given situation. The document guides the necessary investigations to be undertaken before a credit or guarantee fund can be set up. It reviews some of the major points to be taken into account in contracts and agreements with local financial institutions and gives suggestions on fund management and accounting standards.
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