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Credit guarantee schemes – a response from the National Guarantee System of Ecuador
In an earlier article 'Credit guarantee funds and mutual guarantee systems', in Volume 4 Number 2 of SED, Jacob Levitsky commented that for credit guarantee schemes in Latin America, '… in no way does the guarantee organization contribute to an improvement in the attitudeor ability of the debtor as regards to the repayment of loans and the use of the finance being borrowed'.The author of the following article responds in this way:'The observations [by Jake Levitsky] were limited:○ to guarantee schemes financed by governments;○ to guarantee
organizations which do not undertake any real independent credit appraisal analysis; and○ to centralized guarantee mechanisms.There are, in fact, a number of well-functioning guarantee schemes, among them the National Guarantee System of Ecuador (SNGC).' In the following article
an attempt has been made to give a more complete picture of the success of guarantee schemes, by describing the functioning of the SNGC, its focus, source of funding, structures and procedures. The article compares SNGC with the criteria for success described by Levitsky; it points to the
problems still facing SNGC and makes some suggestions about how they may be overcome.
In an earlier article 'Credit guarantee funds and mutual guarantee systems', in Volume 4 Number 2 of SED, Jacob Levitsky commented that for credit guarantee schemes in Latin America, '… in no way does the guarantee organization contribute to an improvement in the attitude
or ability of the debtor as regards to the repayment of loans and the use of the finance being borrowed'.The author of the following article responds in this way:'The observations [by Jake Levitsky] were limited:○ to guarantee schemes financed by governments;○ to guarantee
organizations which do not undertake any real independent credit appraisal analysis; and○ to centralized guarantee mechanisms.There are, in fact, a number of well-functioning guarantee schemes, among them the National Guarantee System of Ecuador (SNGC).' In the following article
an attempt has been made to give a more complete picture of the success of guarantee schemes, by describing the functioning of the SNGC, its focus, source of funding, structures and procedures. The article compares SNGC with the criteria for success described by Levitsky; it points to the
problems still facing SNGC and makes some suggestions about how they may be overcome.
or ability of the debtor as regards to the repayment of loans and the use of the finance being borrowed'.The author of the following article responds in this way:'The observations [by Jake Levitsky] were limited:○ to guarantee schemes financed by governments;○ to guarantee
organizations which do not undertake any real independent credit appraisal analysis; and○ to centralized guarantee mechanisms.There are, in fact, a number of well-functioning guarantee schemes, among them the National Guarantee System of Ecuador (SNGC).' In the following article
an attempt has been made to give a more complete picture of the success of guarantee schemes, by describing the functioning of the SNGC, its focus, source of funding, structures and procedures. The article compares SNGC with the criteria for success described by Levitsky; it points to the
problems still facing SNGC and makes some suggestions about how they may be overcome.
The financial systems approach to development finance: Origin, evolution and prospects
Schoombee, Andrie
Development Southern Africa, Vol. 15 (1998), Iss. 3 P.379
https://doi.org/10.1080/03768359808440020 [Citations: 3]Tabs navigation
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