The contribution of the Loan Guarantee Fund to facilitating the financing of small and medium enterprises in Algeria

Abstract

The problem addressed by this study goes back to the existence of a large number of problems that small and medium-sized enterprises encounter with the business environment that prevents them from accessing bank financing, or forces commercial banks to classify loans that they receive. are granted as high risk credits.

      This is done despite the benefits to small and medium-sized enterprises in promoting economic and social development. To correct these situations, it must seek the most appropriate solutions to solve the problems that prevent them to access bank financing.

      The purpose of the study is to shed light on the credit guarantee fund as one of those solutions that help small and medium-sized enterprises to the economic feasibility of obtaining credit, by reducing the problem of asymmetric information. and transaction costs as one of the biggest bank financing hurdles for small and medium-sized enterprises.