Guarantee Funds in Microfinance: A Comparative Analysis

It is known that micro and small enterprises (often unbankable) have usually difficulties in the access to the financial system; in order to facilitate their credit access in many countries different kind of mutual guarantee schemes and institutions generally grant different typologies of guarantees. Mutual guarantee schemes and institutions can significantly contribute to facilitate the credit access of micro and small enterprises, by reducing the information asymmetries between the lender and the borrower and, in some cases, by decreasing the cost of funding. In this perspective, this research aims at offering a comprehensive comparative analysis of the most significant models of micro credit sector and guarantee funds adopted in two European country (Italy and Spain) and in two African countries (Morocco and Tunisia).The perspective adopted in the paper is finally addressed to highlight the strength and weaknesses of the different typology of microcredit guarantee system, in order to: point out some regulatory or operative solutions which, once known, may improve the economic sustainability of the microcredit sector/institutions and, ultimately, can contribute to really facilitate the access to credit for microenterprises.