AGRO WINDOW

The Agro Window offers guarantees for financial institutions to cover the risk of loans in the agricultural sector. Clients eligible for guarantees include MSMEs registered with the Kosovo Business Registration Agency (KBRA) or farmers holding a Farmer Registration Certificate with a Farm Identification Number (FIN).

For more detailed information regarding the specifics of the Agro Window, please click on the following link:

KCGF – Agro Window

STANDARD WINDOW

The Standard Window offers guarantees for financial institutions to cover the risk of loans to micro, small, and medium enterprises (MSMEs) registered with the Kosovo Business Registration Agency (KBRA).

The Standard Window aims not only to support access to finance across all sectors that significantly contribute to the country’s economy and are targeted by KCGF’s partner institutions, but also to stimulate exporting enterprises by providing better opportunities for this category.

For more detailed information regarding the specifics of the Standard Window, please click on the following link:

KCGF – Standard Window

In the course of attractive and favourable offers, Banka Ekonomike provides Credit lines; which is a credit product intended to finance the working capital needs of the business for a fixed period of time.

This kind of product enables you to create a negative balance in your account up to the set limit, in order to mainly finance purchases in different seasonal periods.

Minimum amount of the Credit lines:

– From €1,000

Maturity:

– Up to 24 months

Guarantors:

– Amounts up to €20,000 no guarantors required

Collateral: 

– Only 50% of the amount of credit line for amounts up to €10,000

– No collateral required for overdrafts with amounts > € 50,000

Borrowing is another very flexible credit product that we provide for your business seasonal activities for the purpose of financing specific projects which are expected to generate a larger influx of revenue in a given period.

Payment plan for the borrowings may be in the form of an agreement for payment of interest only until maturity when the principal is paid or payment with one instalment of the principal only and interest at the time of maturity

Minimal amount of borrowing:

– From €1,000

Purpose:

– Working capital and fixed assets

Maturity:

– 12 months for Micro businesses

– 18 months for agro-businesses with pronounced seasonality

Payment schedule:

– Payment of interest only until maturity, when principal is paid

– At maturity, the principal along with interest, if there is interest unpaid

Garantor:

– For amounts up to €20,0000  no guarantors required

Collateral:

– No mortgage required for amounts > €50,000

Besides financing of business transactions, Banka Ekonomike also takes care of guaranteeing the good flow of these transactions. The Bank guarantees are security instruments issued by the Bank which you can use primarily to secure your transactions with your business partners.

Bank guarantee represents the readiness of the bank to pay to the beneficiary of guarantee a certain amount of money in case of failure to fulfill the conditions previously agreed by the parties. Apart from the guarantees for securing the transactions, we provide all kinds of other guarantees such as guarantee for securing bids, guarantee for project execution etc.

Bank guarantees may be issued as a document, or via SWIFT.

Maturity:

-Up to 24 months

Guarantor:

– For amounts up to €20,000 no guarantors required

Collateral:

– Only 50% of the guarantee amount for amounts up to €10,000

– For guarantee amounts > €50,000 no collateral required

Letter of credit is an irrevocable act by the issuing bank to make the payment to the client in the favour of the supplier upon presentation of documents provided for in the letter of credit within the set deadline. 

Letters of credit are mainly used in international trade transactions.

Such a payment instrument provides security to the supplier that he/she will receive the payment for goods, upon submission of documents in accordance with the terms specified in the letter of credit. This product is intended mainly for purchase of goods or fixed assets.

Maturity:

– Up to 24 months

Guarantor:

– For amounts up to €20,000 no guarantors required

Collateral: 

– Only 50% of the letter of credit amount for amounts up to €10,000

– For letter of credit amounts > €50,000 no collateral required

The Women in Business Window aims to facilitate access to finance for women entrepreneurs and advance their financial knowledge. This support is expected to positively impact women’s financial security, empowerment, and independence.

This window is offered under favorable credit risk conditions to increase the confidence of Registered Financial Institutions in lending to this important market segment. Through financial support, it enables market positioning, expansion into international markets, job generation, and support for the economic development of our country.

A distinctive feature of this window is that, in addition to the financial component, it offers a non-financial component or technical assistance program for Women in Business, supporting them in:

• Capacity building (financial education and formalization)
• Networking
• Mentoring

Intermediaries

Banka Ekonomike Sh.A., Banka Kombëtare Tregtare, Banka për Biznes Sh.A., TEB Sh.A.

Which Businesses Qualify?

• Privately owned MSMEs with no government ownership during the credit guarantee coverage period
• MSMEs owned or co-owned by at least one woman, or managed by at least one woman in an executive position
• Registered MSMEs
• At least one private citizen or permanent resident of Kosovo must own the business
• MSMEs with fewer than 250 employees

What Loans Qualify?

• Minimum loan amount: EUR 3,000
• Maximum loan amount: EUR 50,000
• Maximum guarantee amount: EUR 35,000
• Maximum loan maturity: up to 84 months
• Loan purposes: long-term investments and working capital

Guarantee Characteristics

• Guarantees cover up to 70% of the loan principal
• Maximum loss coverage: 30%
• Guarantee type: Revolving

Benefits

For MSMEs

• Increased access to finance
• More favorable terms for women in business
• Potential preferential interest rates
• Reduced collateral requirements
• Faster loan application processing
• Business sustainability

For Registered Financial Institutions

• Lower risk costs
• Capital relief
• Full loss coverage
• Reduced credit risk
• Increased loan portfolio
• Increased income from other product sales

Application and Decision Process

The potential borrower does not apply for a guarantee at KCGF, but rather applies for a loan at one of the KCGF-registered financial institutions. The financial institution conducts standard credit analyses following approval standards, and if the business meets KCGF criteria, the respective financial institution will place the loan under the KCGF credit guarantee scheme.

GROW – The Recovery and Green Opportunities Window

GROW – The Recovery and Green Opportunities Window aims to enhance access to finance for micro, small, and medium enterprises (MSMEs) by supporting financial institutions in lending for renewable energy and energy efficiency projects.

FINANCIAL PARTNERS

• Bank for Business Sh.A.
• NLB Banka Sh.A.
• ProCredit Bank Kosovo J.S.C.

WHICH MSMEs QUALIFY?

• Privately-owned MSMEs (no government ownership during the guarantee coverage period)
• Officially registered businesses
• Owned by at least one private citizen or permanent resident of Kosovo
• Fewer than 250 employees

GUARANTEE CHARACTERISTICS

• Coverage up to 50% of the loan principal, not exceeding €500,000
• Maximum loss cap: 100%
• Guarantee type: Revolving

WHAT LOANS QUALIFY?

• Loan amounts between €3,000 and €3,000,000
• Maximum credit exposure: €5,000,000
• Maximum guarantee: €500,000
• Maximum total exposure per beneficiary under credit guarantees: €1,000,000
• Loan maturity of up to 84 months
• Purpose:
  • Energy Efficiency Investments (building envelope, equipment, production lines, and other efficiency measures – up to 20% may be complementary investments)
  • Small-scale renewable energy projects (solar, wind, biomass, or geothermal) up to 400 kW

BENEFITS

For MSMEs:

• Improved access to finance
• More favorable loan conditions
• Potentially preferential interest rates
• Reduced collateral requirements
• Faster loan processing times
• Increased business sustainability

For Registered Financial Institutions (RFIs):

• Lower risk costs
• Capital relief
• Full loss coverage
• Reduced credit risk
• Increased guarantee limits
• Expanded credit portfolio
• Higher revenue from additional product sales

Learn more: growkosovo.com

Start-Up Window

The Start-Up Window aims to facilitate access to finance for start-up enterprises through suitable financial products, to ensure the growth of newly established businesses and increase employment, thereby improving the living standards of the population.

This window targets start-up businesses engaged primarily in economic activities/sectors that require basic knowledge, referring to skills obtained through education, training, or previous work experience.

It is offered under favorable credit risk conditions to increase the confidence of Registered Financial Institutions in lending to this important market segment. Through financial support, it ensures market positioning, expansion to international markets, job creation, and contribution to the economic development of our country.

A special feature of this window is that, in addition to the financial component, it offers a non-financial component or technical assistance program to new businesses, providing support in:

• Capacity building (financial education and formalization)
• Networking
• Mentoring

Intermediaries

Banka Ekonomike Sh.A., Banka Kombëtare Tregtare, Banka për Biznes Sh.A., TEB Sh.A.

Which Businesses Qualify?

• Privately owned MSMEs with no government ownership during the loan coverage period by the guarantee
• Registered MSMEs
• MSMEs with experience from the date of registration up to 12 months
• At least one private citizen or permanent resident of Kosovo must own the business
• MSMEs with fewer than 250 employees

What Loans Qualify?

• Minimum loan amount: EUR 3,000
• Maximum loan amount: EUR 50,000
• Maximum guarantee amount: EUR 40,000
• Maximum loan maturity: up to 60 months
• Loan purposes: long-term investments and working capital

Guarantee Characteristics

• Guarantees cover up to 80% of the loan principal
• Maximum loss coverage: 40%
• Guarantee type: Revolving

Benefits

For MSMEs

• Increased access to finance
• More favorable terms for entrepreneurs who complete FKGK-offered training
• Potential preferential interest rates
• Collateral reduction
• Faster loan application processing
• Business sustainability

For Registered Financial Institutions

• Reduced risk cost
• Capital relief
• Full loss coverage
• Lower credit risk
• Increased loan portfolio
• Increased revenue from other product sales

Application and Decision Process

The potential borrower does not apply for a guarantee at FKGK, but instead applies for a loan at one of the FKGK-registered financial institutions. After conducting standard credit analyses and if the business meets FKGK criteria, the respective financial institution will place the loan under the FKGK credit guarantee scheme.

Banka Ekonomike offers support with various banking products and services dedicated to every small and medium-sized enterprise, making itself available to all who choose to collaborate with us.

Regardless of your business investment goals, our bank is always your potential partner for continuous development and success.

These credit products are designed to meet your needs and are categorized into products for businesses and agribusinesses. The purpose of these products is determined based on the product or service you select and is specified in separate credit agreements for each product.

Types of Credit Products Offered by the Bank for Businesses

• Installment Loans
• Deposit-backed Loans
• Leasing
• Overdraft
• Credit Line
• Bank Guarantee (national or international)
• Letter of Credit

Collateralized Loan with Term Deposit – Banka Ekonomike

In order to increase the efficiency of your business development, Banka Ekonomike offers financing to clients for utilizing all business resources. Therefore, it provides clients with the loan product secured by a term deposit for business needs, allowing the client to borrow up to 100% of the amount of the term deposit.

The client is obligated to repay the specified loan amount in installments according to the conditions set in the agreement and the repayment schedule. A key feature of this credit product is that the loan is secured by a deposit.

Installment Loans – Banka Ekonomike

Banka Ekonomike offers installment loans with either short-term or long-term structures. Typically, installments are equal throughout the loan term. Businesses affected by cash flow fluctuations due to seasonality may apply for irregular installments or grace periods (standard grace – interest-only payments without principal repayment, or full grace – no interest or principal payments).

For agricultural activities or project financing where payments primarily occur after project completion, irregular installments or grace periods are preferred.

Minimum Loan Amount

€1,000

Purpose

• Working capital
• Fixed assets
• Loans for renovation, construction, or purchase of real estate (commercial premises, land)
• Mixed purposes

Loan Repayment Maturity

Our goal is to support your investments, therefore we offer business loans with:

• Working capital loan maturity: from 6 to 36 months
• Fixed asset loans: from 6 to 96 months
• Mixed-purpose loans: maturity determined based on the investment plan’s composition
• Renovation or purchase of commercial/residential properties: up to 120 months
• Cash-secured exposure maturity must end one day prior to the fixed-term deposit’s maturity

Grace Period

• Up to 12 months for agribusinesses
• Standard grace period: interest-only payments (no principal)
  Full grace period: no interest or principal payments until the end of the grace period (full moratorium)

Repayment Schedule

Regular or irregular

Overdraft Facility – Banka Ekonomike

For unexpected expenses and times when your business needs additional funds, the right solution is to apply for the overdraft product.

The overdraft is a flexible short-term credit product that allows the client to create a negative balance in their account up to a defined limit. It is linked to the current or potential turnover through the client’s current account. As a result, the client pays interest only on the utilized negative balance.

Accessing the overdraft product is very simple, as it is directly connected to the current account and can also be used via online e-banking.

In addition to easy access to additional funds, an important benefit is that you only pay for the amount and the period of time the overdraft is used.

• Minimum overdraft amount: €1,000
• Repayment term: Up to 12 months

DIASPORA INVESTMENT WINDOW

The Diaspora Investment Window aims to support investments in private enterprises established by our compatriots living and working abroad.

EXPRESSION OF INTEREST FOR THE DIASPORA INVESTMENT WINDOW

PARTNER INTERMEDIARIES / BANKS

The financial institutions registered with the KCGF that have signed the guarantee agreement for the Diaspora Investment Window are:

• Banka Ekonomike Sh.A.
• National Commercial Bank (BKT Kosovo)
• Bank for Business Sh.A.
• NLB Bank Sh.A.
• ProCredit Bank Kosovo J.S.C.
• Raiffeisen Bank Kosovo J.S.C.
• TEB Bank Sh.A.

WHAT IS CONSIDERED A DIASPORA INVESTMENT AND WHAT ARE THE LEGAL REQUIREMENTS?

The diaspora investor must clearly express the intention to invest in Kosovo by:

• Starting a new business, or
• Supporting an existing business in Kosovo founded by the diaspora investor.

Businesses with more than 36 months of operation are not eligible for this window.

Ownership structure of newly created businesses by diaspora investors must be:

• Fully owned by the diaspora investor,
• In partnership with Kosovo residents (e.g. business partners, relatives, or friends residing in Kosovo), or
• Established jointly with a foreign (non-Kosovo resident) co-investor.

In all cases, the diaspora investor must own at least 30% of the business. A business plan must accompany the investment initiative.

COMPLIANCE WITH LEGAL REQUIREMENTS

Applicants must comply with all laws, regulations, and relevant guidelines governing investment and business activities in Kosovo. Additionally, applicants will be subject to AML/CFT due diligence by the financial institution and must not be under legal proceedings or listed on any international sanctions lists.

WHICH BUSINESSES QUALIFY?

• Privately owned MSMEs founded by diaspora investors.
• Registered with the Kosovo Business Registration Agency (KBRA). Visit KBRA
• Established within the past 36 months.
• Inclusive of all sectors except those excluded under KCGF’s environmental and social policy.
• Investor with a good credit history in the country of residence or Kosovo.
• Employs fewer than 250 employees.

Additional Info on Kosovar Origin of Business Owner

• Persons born and originally residing in Kosovo who have lived abroad for more than 3 years.
• Second-generation descendants of Kosovar parents with roots in Kosovo.

WHAT LOANS ARE ELIGIBLE UNDER THE DIASPORA INVESTMENT WINDOW?

• Minimum loan amount: EUR 3,000
• Maximum loan amount: EUR 3,000,000
• Minimum guarantee amount: EUR 1,500
• Maximum guarantee amount: EUR 2,000,000
• Loan term: Minimum 3 months, Maximum 84 months
• Loan purpose: Business investments (fixed assets, equipment, working capital)

TYPES OF LOANS

Loan; Credit line; Overdraft

WHAT ARE THE CHARACTERISTICS OF THE GUARANTEE?

Credit guarantee coverage of up to 80% of the loan principal, but no more than EUR 2,000,000. The percentage of guarantee coverage depends on the initial investment amount.

The investor must participate with a minimum of 20% of the initial investment.

WHAT IS THE APPLICATION AND DECISION-MAKING PROCESS?

1. The potential borrower (MSME) does not apply for a guarantee directly but applies for a loan at one of the KCGF’s Registered Financial Institutions (RFI).
2. The RFI conducts the standard credit analysis using its own risk assessment standards.
3. If the business meets KCGF’s criteria, the RFI places the loan under KCGF’s credit guarantee scheme.
4. After the loan is entered into KCGF’s Information Management System by the RFI, KCGF officially accepts the loan under its credit guarantee.