USAID Supports an Easier and Quicker Way for Kosovo Businesses to Finance Exports

USAID first piloted export financing in 2021. However, with the growth of Kosovo’s exports as well as the growth in manufacturing, the need to expand options, broaden coverage, and develop specific structured financial products has only increased.   In consulting the businesses in sectors such as wood processing, food processing, and information and communications technology, USAID found that 60 percent of businesses surveyed used their own financial sources to fund their export contracts, considering the unfavorable conditions and high collateral requirements by banks. 

In response, USAID’s Compete Activity worked with the Kosovo Credit Guarantee Fund (KCGF) to develop and launch a new loan guarantee mechanism called an “Export Window.” Through the Export Window, new loan guarantees can benefit micro, small and medium enterprises focused on exports.

“We have worked and operationalized…the Export Window. Its promotion, knowledge sharing, training and capacity building of the banks, as well as the engagement of other donors was made possible by the USAID Compete Activity,” said Besnik Berisha, Managing Director of KCGF.

This new credit guarantee mechanism aims to create favorable conditions through easier and quicker access to finance for businesses. The Export Window will enable businesses to expand their generation capacities and products, further increasing their competitiveness in the regional and international markets.  This is an important step in expanding export-oriented financing for Kosovo entrepreneurs. Moreover, the Export Window is projected to generate at least 6,000 new jobs for Kosovans.