CREDIT GUARANTEES FOR SMALL AND MEDIUM ENTERPRISES: FOREIGN EXPERIENCE

The relevance of the research is caused by the fact that small and medium entrepreneurship play an important role in the national economies of the absolute majority of both developed and developing countries. At the same time, one of the significant barriers to its further growth is weak lending by banks to the business sector. One of the main ways to overcome this situation is to develop and implement loan guarantee programs. The purpose of the research is to study the experience of lending to small and medium enterprises using guarantee funds, to analyze the principles and concepts of creating credit guarantee systems. The problems of issuing Bank loans to small and medium businesses were considered, the international experience of implementing guarantee lending programs was studied, and the existing schemes for organizing this activity were considered. The research methodology is based on an analysis of the activities of national, regional and industry guarantee funds, as well as financial and credit organizations that specialize in issuing guarantees for small and medium enterprises. At the same time, the main attention is paid to state guarantees of lending to such enterprises. The experience of credit guarantee systems in Europe, North and Latin America, Asia and Africa was reviewed. The results showed that loan guarantee programs play a major role in reducing restrictions on Bank financing for small and medium enterprises. The article presents the basic principles and concepts of guarantee programs implemented with state participation. It is shown that credit guarantees are one of the tools widely used in support of the business sector of the economy. At the same time, it is most appropriate to issue guarantees that provide a partial volume of lending, when borrowers also bear some responsibility for the return of funds received. The results obtained can be used in the activities of guarantee organizations, financial and credit institutions, and state authorities. The results of the analysis are of interest to managers and employees of small and medium enterprises.