The Mediterranean region stands at a crossroads, grappling with the pressing challenges of economic inequality, limited access to finance, climate change impact, and the need for sustainable growth. A vital component in addressing these issues is the enhancement of credit access for small and medium-sized enterprises (SMEs), which are the backbone of the regional economy. In this context, local credit guarantee schemes emerge as a pivotal tool to bridge the financing gap faced by SMEs.
Local credit guarantee schemes play a crucial role in mitigating the risks for lenders and investors, thereby facilitating increased lending to SMEs. These guarantees help SMEs secure the necessary funds to grow, innovate, address new challenges as per the climate change, and contribute to economic development. Mainstreaming these schemes can significantly enhance financial inclusion and economic resilience across the Mediterranean region.
However, CGS’ usage in the region is often limited to a relatively small share of the SME lending portfolio as well as the need for expanding guarantee products addressing the new challenges, which might imply that there remains a significant growth potential.
It is within this context that the Euro-Mediterranean Guarantee Network (EMGN) organises its fifth Annual Conference, with the aim to provide a platform for stakeholders to delve into the strategies and best practices for better integrating local credit guarantees into the international and national financial systems of Mediterranean countries and in fine enhance their financial resources, expand their risk frame to incorporate new challenges as in climate change aspects, which should consequently vitalize their role and increase their outreach. The conference will highlight the main new challenge of climate change, explore the perspectives of the lenders, investors, international financial institutions (IFIs), and multilateral donors on how to optimise these schemes to support SMEs’ access to credit in the region.
The event is co-organised by TAMWILCOM, the European Institute of the Mediterranean (IEMed), the Euro-Mediterranean Economists Association (EMEA) and the MED Confederation.
Members of the EMGN will be invited to attend the Steering Committee meeting, on 20 February at 15:00 local time.
