Abstract:
Loan guarantee funds are among the approved bodies that institutions resort to in
order to guarantee them with the bank in case of default, on the other hand the
bank considers the source of guaranteeing its loans and protects it from exposure to
the risk of non-payment.
Our study aims to identify the role of loan guarantee funds as a guarantor body
against the risk of non-payment to which any bank is exposed when granting loans,
through a currency mechanism and the ratios that it covers in the event of
guaranteeing any loan. We have relied in our study on the descriptive and
analytical approach due to the nature of the subject and its suitability and on Case
study curriculum in order to project theoretical study onto reality. The study
boundaries are summarized in the period from 2004 to 2019. One of the most
important results that we have reached is that the Loan Guarantee Fund contributes
significantly to reducing these risks by guaranteeing it in the institutions requesting
the loan with smooth handling of the files of the institutions requesting the
guarantee, and this is what we have noticed through the mechanism of the fund’s
work.
