Debt Guarantee Program

A Debt Guarantee Program is a method by which a government or organization promises to pay back a loan if the borrower defaults. This guarantee makes lenders more comfortable lending money because they have added security, reducing their risk. The program aims to support individuals or businesses that might struggle to obtain financing on their own, encouraging economic growth and development. Essentially, it acts as a safety net for lenders, helping borrowers access funds they might not qualify for otherwise, while the guarantor ensures that loans are repaid, promoting financial stability.