Programa Garantias Parciales

Fondo Nacional de Garantías S.A. (FNG) is a mixed-ownership company governed by Colombia's industry and trade regulations and majority controlled by the Colombian government. It is regulated by the Superintendencia Bancaria de Colombia, the nation's bank regulatory agency. FNG's mission is to facilitate access to financing for Colombian Micro and SMEs (small and medium–size enterprises) by providing partial credit guarantees.

FNG is the only Colombian institution that provides credit guarantees to micro, small and medium-size companies. FNG works chiefly with clients of intermediary financial institutions participating in the automatic business guarantee program. FNG provides various credit guarantee lines: business, educational, low-cost housing, and institutional guarantees.

Under the joint IIC/FNG partial credit guarantee program, the Corporation will guarantee 50% of an FNG guarantee portfolio under the program acceptable to the IIC. Guarantee coverage under the program is 50% of the loan amount, so the IIC and FNG will each guarantee 25% of the loan amount, and the financial intermediary granting the loan will assume exposure for the remaining 50%. The IIC and FNG will therefore share the risk associated with jointly guaranteed portfolios.

The program's objective is to increase access to credit for small and medium-size enterprise in Colombia and encourage intermediary financial institutions to provide financing that will enable this important sector of Colombia's economy to meet its investment and working capital needs. It is estimated that 90% of Colombia's businesses are SMEs, generating between 60% and 70% of the nation’s jobs and some 40% of domestic production.