Pre-feasibility Study for Establishing a Regional Counter Guarantee Scheme
Area of Operation: MENA Region (remote)
Duration of Assignment: March 2022 – Ongoing
Name of Client: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Meetings between the Euro-Mediterranean Credit Guarantee Network (EMGN) and the Arab Monetary Fund (AMF) and their central bank member institutions took place to explore opportunities in setting up a regional counter guarantee scheme for the Arab region. As a result of these various conventions, the intention was expressed by financial sector regulators and EMGN members to commission a pre-feasibility study funded by GIZ on the establishment of a regional counter guarantee scheme for the Arab region.
- Developed a rationale for a regional counter guarantee scheme and fact-based recommendation for strategic options.
- Conducted a desk study of similar schemes in other countries / regions to determine the context and background of counter guarantee scheme concept.
- Conducted an economic analysis of Arab countries, country profiles (focused on financial sector and MSME lending).
- Carried out a high-level analysis of existing national CGS in Arab region.
- Conducted a workshop to consider strategic mandate options for a potential counter guarantee scheme including the pre-requisites, required policy dialogue, and alignment on strategic options.
- Developed options for capitalization structure with blended finance approach and its impact on sustainability of the scheme.
- Conducted a stakeholder mapping (governments, regulators, nationals CGS schemes, donors / investors, other).
Considered legal and regulatory considerations for a potential regional counter-guarantee scheme.