CGFT Business Model and Framework
Business Model of CGFT
CGFT is based on a secondary business model, using credit guarantees as instruments for benefiting Tajik MSME borrowers through its PFIs. Throughout the process, CGFT ensures the balance of interests among its target groups of MSME borrowers as well as lenders. CGFT’s proven model of success ensures:
Guaranteed MSME loans are disbursed by PFIs in Somoni (the Tajik currency) or US Dollars and range from USD 2,000 to USD 500,000 equivalent in value. CGFT guarantees a significant proportion of the oustanding value of each loan and offers TA services to mitigate risk.
Founders of CGFT
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a member of KFW Group
FMO – Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
OeEB – Oesterreichische Entwicklungsbank AG
CGFT is manged by LANDT GmbH, a international development finance company dedicated to setting up and operating credit guarantee funds and providing TA and development finance consulting.
Backed by CGFT’s best practice credit technology, a diversified range of customer-oriented credit products and optimized risk management through its TA services, PFIs are able to expand their credit operations to reach new business groups facing barriers to their access to finance and help their MSME clients to realize their full growth potential.
The institutional profile of CGFT provides detailed information about the context of Tajikistan, set-up, achievements and outlook of the fund.