Amid the global COVID-19 crisis, governments worldwide introduced measures to support private enterprises. This study utilizes a newly curated panel database, encompassing the financial records of firms in Peru, to investigate the impact of a substantial governmentbacked loan guarantee program,...

We study third-party loan guarantees in a model in which lenders can screen, learn loan quality over time and can sell loans before maturity when in need of liquidity. Loan guarantees improve market liquidity and reduce lending standards, with a positive overall welfare effect. Guarantees...

This paper evaluates, under a descriptive approach if, by means of their loan guarantee programs, the Mexican government-owned financial institutions have succeeded in promoting the private banks credit supply to targeted segments of private businesses; fostered the granting of loans that help...

The efficiency of federal lending guarantees depends on whether guarantees increase lending supply, or simply act as a subsidy to lenders. We use notches in the guarantee rate schedule for loans backed by the Small Business Administration to estimate the elasticity of bank lending volume to loan...

This paper evaluates, under a descriptive approach if, by means of their loan guarantee programs, the Mexican government-owned financial institutions have succeeded in promoting the private banks credit supply to targeted segments of private businesses; fostered the granting of loans that help...

Guarantee banks backed by the state aim to close the gap in the financing of small and medium-sized enterprises or start-ups caused by lacking collateral or equity and high information asymmetry. The present study quantifies the economic and fiscal net benefits of guarantee banks in the new...

In this paper we study the functioning of the Italian public guarantee fund (“Fondo Centrale di Garanzia”, FCG) for small and medium enterprises (SMEs). Using an instrumental variable strategy, based on FCG eligibility, we investigate whether the guarantee generated additional loans and/or...

Credit Guarantee Schemes (CGSs) are a widely used policy tool to ease access to finance by SMEs, which, in some countries, ramped up in the aftermath of the 2008-09 financial crisis. The present study aims to improve understanding about the role, impact and sustainability of CGSs, by...