Volume 27, Number 1

Assessing the Economic Value of Credit Guarantees

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JPD 2000 Vol. XXVII No. 1-b
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Abstract

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.

Citations

  1. Llanto, Gilberto M., Ma. Piedad S. Geron, and Jocelyn Alma R. Badiola. 2016. Comprehensive study on credit programs to smallholders. Discussion Papers DP 2016-48. Philippine Institute for Development Studies.
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2000-06-01
Volume 27, Number 1
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June 1, 2000
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The Philippine Journal of Development (PJD) is a multidisciplinary, peer-reviewed journal published biannually by the Philippine Institute for Development Studies (PIDS). It serves as a platform for disseminating policy-oriented research on development issues, including the economy, business, public administration, foreign relations, sociology, and political dynamics. 

P-ISSN 2508-0954 • E-ISSN 2508-0849 • https://doi.org/10.62986/pjd