Consultancy on Credit Guarantee Schemes in BiH

Area of Operation: Bosnia and Herzegovina

Duration of Assignment: April 2021 – June 2021

Name of Client: The World Bank

Project Description:

LANDT prepared a series of virtual workshops that benefit the institutions, the FBiH Development Bank and the Republika Srpska (RS), to improve their respective credit guarantee funds through capacity building. The project aimed to strengthen their operational and implementation arrangements and address bottlenecks in CGF implementation.

LANDT was tasked with sharing knowledge and international know-how on CGS approaches to address challenges around design and implementation and to learn about best practices in the (1) usage of counter-guarantees and other instruments that can be matched with guarantees; (2) monitoring & evaluation and impact assessment; (3) CGS design and implementation with a specific focus on outreach and delivery channels.

Our Services:

  • Mapped and created a database of credit guarantee agencies globally across regions.
  • Ensured understanding of the rationale and mechanism of counter-guarantee instruments.
  • Mapped out the evolving landscape of the EU counter-guarantee instruments − past (InnovFin, COSME, and Western Balkans EDIF Guarantee Facility) and prospective (InvestEU) − which would be potentially accessible for the credit guarantee schemes in FBiH and RS.
  • Created awareness of the actual process of implementing European Investment Fund (EIF’s) counter-guarantees and matching credit guarantees with other instruments through a case study of the National Guarantee Fund in Bulgaria.
  • Discussed the needs of the two institutions in counter-guarantee schemes and reflect on the potential ways of addressing these needs through counter-guarantees and combining credit guarantees with other instruments.
  • Conveyed the importance of articulating the mandate of the CGS with which the indicators were aligned and the performance was measured.
  • Ensured understanding of the principles of Monitoring & Evaluation for CGS and demonstrated the interconnectedness of the logical framework with monitoring and reporting.
  • Promoted the importance of empirical evidence-based decision-making and a methodologically sound approach to impact measurement.
  • Provided the participants with high-level guidance on the steps to be implemented in developing the Monitoring & Evaluation framework.
  • Equipped the workshop participants with a framework of core CGS design elements, based on the World Bank principles and LANDT‘s experience, which can be adjusted as the CGSs evolve.
  • Facilitated a deeper understanding of mechanisms and rationale for different guarantee delivery channels and the consequent effects on the outreach, additionality and financial sustainability.
  • Initiated self-evaluation and reflection among the workshop participants on the design of their respective CGS.
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