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GO Network CREDIT GUARANTEE ORGANISATION NETWORK The project is aimed at providing an overview of existing experiences with credit guarantee in the East European, identifying the current policy issues of credit guarantee development in East European and recommending how the Government can address specific actions in order to create a more enabling environment. Foreword SMEs play a crucial role in facing today’s economic and social challenges and in creating employment. A strong SME sector is essential for the future competitiveness of Candidate Countries and is the most important engine of economic growth. Improving an enabling environment for SME development is hence crucial for both the SME sector and for the economy as a whole. SMEs financial development in the Eastern countries is hindered by lack of collateral. Therefore available capital is not easily granted by banks. The challenge for the Eastern Countries’ Government now is to increase capital flows from commercial banks to the SME sector. The mismatch between banks collateral requirements and SMEs’ availability of collateral is overcome by the so-called credit guarantee scheme that relieves financers from the part of the risk not covered by the SME itself. The guarantee fund scheme is so important that the EU Commission defined its role in 1991 (see Communication SEC 91 1550). The Project The project is aimed at providing an overview of existing experiences with credit guarantee in the East European, identifying the current policy issues of credit guarantee development in East European and recommending how the Government can address specific actions in order to create a more enabling environment. In this context, the project aims to create a pilot project, intended as a form of technical assistance to the creation of a specific guarantee system or to the implementation of an already existing guarantee scheme.  The project intend to create a network among guarantee organisations located in member and non-member countries. Such a network should assist in elaborating a common methodology, in accordance with Basel 2 Agreement (companies evaluation, risk classifications, capital erosion, etc.), sharing experiences, exchanging know how and services and supporting SMEs in the countries partner in any location. The envisaged shared rating system to be applied to in the pilot project and to be used as a potential standard criterion throughout Europe is of great relevance.This project will enable development of new opportunities of investment in the CADSES countries, thanks to innovative tools such as: new financial services, innovative activities aimed at creating new business opportunities, helping to introduce counter-guarantee instruments (by the European Investment Fund) and to promote the development of national co-guarantee instruments. All these innovative tools will be promoted by the guarantee organisations network and should improve credit availability to SMEs. Definitely, GO Network actions are intended to improve enterprises access to financial and banking services and the search for innovative financial instruments to support SMEs. In particular, instruments of guarantee are indispensable to SMEs development and therefore to an effective process of economic and social cohesion. The creation of a net of guarantee organisms sharing common SMEs evaluating methodologies and conforming their own operative procedures, can be an advantage for the SMEs themselves. The difficulties to overcome will concern the big technical and organizational difference among the guarantee organisations of EU and extra EU countries. The project meets the objectives of the partners in that they also work for the development of SMEs. As regards the objectives of the regions of the partners involved, these are also met by the project since the development of SMEs implies the growth of the area in which they operate and therefore an improvement in the social and economic conditions in the area as a whole. In addition the project meets a specific need of the final beneficiaries (SMEs): the activation of specific measures aimed at their development and preparation for the impact of the Basel Agreement 2. The project, named "GO Network" (Guarantee Organization Network), refers to the Priority 1, of the INTERREG III B Programme, Promoting spatial development approaches and actions for social and economic cohesion - measure 1.1 - Supporting joint strategies for spatial development and actions for implementation. GO Network will be shaped according to following four work packages: Work Packages 1. Know how transfer 2. Network creation 3. Pilot project 4. Dissemination of results Partners Project Leader Regione Veneto (I)
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 Project part-financed by the European Union |
 INTERREG III BCADSES |
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