Normal view MARC view ISBD view

Assessing the economic value of credit guarantees /

By: Saldaña, Cesar G.
Series: Vol. 27 No. 1 First Sem 2000.Description: p.27.Subject(s): Small-scale enterprises (SSE) | Incentive compatible policies | Moral hazard problemOnline resources: Click here to access online In: Journal of Philippine DevelopmentSummary: This article analyzes how a credit guarantee confers private benefits to creditors and proposes reform policies and related assessment measures in order to make credit guarantee a socially beneficial intermediation instrument. Analysis indicates that the necessary and sufficient conditions for credit guarantee to have positive economic value to creditors include sufficiency of collateral and creditor's risk aversion. Findings also suggest that guarantee programs have a limited reach, implying a need for continuing subsidies.
    average rating: 0.0 (0 votes)
No physical items for this record

This article analyzes how a credit guarantee confers private benefits to creditors and proposes reform policies and related assessment measures in order to make credit guarantee a socially beneficial intermediation instrument. Analysis indicates that the necessary and sufficient conditions for credit guarantee to have positive economic value to creditors include sufficiency of collateral and creditor's risk aversion. Findings also suggest that guarantee programs have a limited reach, implying a need for continuing subsidies.

Philippine Institute for Development Studies | Powered by Koha