Credit Guarantees
CGFT's core products are credit guarantees which incentivize lending by its PFIs — enhancing access to finance for MSMEs so that they can realize their full growth potential and provide enhanced job opportunities and incomes for local communities.
CGFT was established to facilitate opportunities for financing for the MSME sector in Tajikistan. CGFT’s credit guarantees alleviate constraints typically faced by MSME borrowers in accessing finance.

Benefits
Credit guarantees provide multiple benefits for PFIs and MSMEs and contribute to the macro-economic development of Tajikistan.
Micro, Small & Medium Enterprises:
Substituted collaterals
Easier access to financing
Loan sizes and conditions appropriate to the need and repayment capacity of borrowing businesses
Realizing the growth potential of revenues, earnings, and the potential recruitment of new employees
Increasing lending volume without drastic risk increases
Partner Financial Institutions:
Increased lending volume, decreased risk
Profit increases
Outreach to previously inaccessible target groups
Financial services innovation and a focus on customer needs
Increasing lending volume without drastic risk increases
Risk sharing with PFIs allowing for the mitigation of the objective and subjective risk perceptions that affect their lending practices
Tajikistan:
Overall economic development
Private sector development
Creation of additional and reliable incomes
Employment for the local population
Counterbalancing economic and security challenges
Strengthening trade, production and access to local & global markets
These benefits make CGFT’s credit guarantees a valuable tool, well-suited for the development of the financial sector in the challenging economic context of Tajikistan.

Eligibility Criteria
The core service provided by CGFT are credit guarantees, which cover a significant share of the default risk of a loan to be disbursed by a PFI. In case of default of the borrower, the lender recovers the value of the guarantee from CGFT.
In vetting loans, CGFT relies on clear and well-defined eligibility criteria:
MSME size of maximum: 500 employees, USD 15 million annual turnover, USD 15 million total assets - all three criteria to be met
Present loan duration limited to a maximum of 60 months
Eligible sectors include private sector activities (except housing); trade finance is restricted to exclude pure import / re-export investments. In case of trade finance a physical set-up of the respective business in Tajikistan is required
Borrowers can be individuals (single ownership, partnership, family business) or legal entities (incorporated companies) with private and business residence in Tajikistan
Borrower's business needs be feasible and generating sufficient cash-flow / income so as to provide sufficient repayment capability; borrowers need to be creditworthy, both individually (i.e. in respect of his/her entrepreneurial suitability, managerial and technical know-how and experience) and materially (i.e. in respect of their financial position)
Eligible loan purposes include working capital and fixed assets
UN Sustainable Development Goals
CGFT contributes to the advancement of the United Nations Sustainable Development Goals in Tajikistan. CGFT strives to achieve transformational change through strengthening of the financial sector, which provides the MSME sector with credits, and in turn creates new and secures existing jobs.