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One of the central themes in the analysis of credit guarantee systems is whether they can be designed and implemented in a sustainable way – one that does not require subsidies from the government or from donors. This article examines the issues of sustainability by taking a look
at the costs of making and guaranteeing small loans and the way these costs are affected by different kinds of guarantee programmes. The successful savings and lending bank, Caja Social of Colombia, is analysed to provide benchmark figures for the cost of risk and the cost of administration.
Following from this, some conclusions are drawn about the role of sustainable guarantee programmes and the structure they should have in order to make them sustainable.
at the costs of making and guaranteeing small loans and the way these costs are affected by different kinds of guarantee programmes. The successful savings and lending bank, Caja Social of Colombia, is analysed to provide benchmark figures for the cost of risk and the cost of administration.
Following from this, some conclusions are drawn about the role of sustainable guarantee programmes and the structure they should have in order to make them sustainable.
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