Financing SMEs Through Guarantee Instruments During and After the COVID Crisis, Following the Example of the Republic of Bulgaria
Financing SMEs Through Guarantee Instruments During and After the COVID Crisis, Following the Example of the Republic of Bulgaria

Author(s): Katerina Vojcheska-Nikodinoska
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Credit guarantees; SME finance; Mutual guarantee schemes; Financial instruments
Summary/Abstract: The paper presents an evaluation of the measures to support SMEs as well as the characteristics of the standard guarantee instruments and those that are modified and specially created in connection with overcoming the Pandemic COVID - 19 with derived theory and obtained empirical results. In order to prevent a large part of the real economy from becoming insolvent, most European countries have taken measures to support companies to help their immediate liquidity needs. The measures included: temporary deferment or remission of taxes; moratorium and restructuring of loans with postponement of repayments or extension of terms; guarantees to facilitate obtaining new loans on favourable terms; covering part of the salaries and other operating expenses; direct aid for businesses with imposed restrictions, etc. The measures and guarantee instruments showed different effectiveness, with the greatest positive effect on liquidity being those supporting employment and current expenses, followed by the measures related to debt service and use of new loans, and the least impact showing postponements of taxes.

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