Partial credit guarantees and SMEs financing

Melisso Boschi (), Alessandro Girardi and Marco Ventura

Journal of Financial Stability, 2014, vol. 15, issue C, 182-194

Abstract: Using data for the Italian Central Guarantee Fund for Small and Medium Enterprises, the paper analyses the effect of partial credit guarantees on firms’ financing. We show that neglecting heterogeneity in guarantee intensities, namely considering all firms as equally treated, leads to a mis-measurement of the additionality effect. Moreover, we document the existence of non-linear effects, suggesting that coverage ratios below a certain threshold are likely to be ineffective to lessen obstacles faced by firms when seeking external financing funds.

Keywords: Credit guarantees; Credit rationing; Additionality; SME; Italy (search for similar items in EconPapers)
JEL-codes: G14 G21 G28 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:15:y:2014:i:c:p:182-194

DOI: 10.1016/j.jfs.2014.09.007

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