Credit Guarantee Fund (KGF)

Kredi Garanti Fonu (KGF) is Turkey’s national credit guarantee institution, established in 1991 to support businesses—especially SMEs—that face challenges accessing financing due to insufficient collateral. Operating as a public-private joint stock company, KGF partners with key stakeholders including TOBB (Union of Chambers and Commodity Exchanges of Turkey), KOSGEB (Small and Medium Enterprises Development Organization), and 29 major Turkish banks, which together represent 99% of the sector’s market share.

KGF provides loan guarantees, leasing guarantees, and counter-guarantees backed by its own equity and by funds from institutions such as the Ministry of Treasury and Finance and the European Investment Fund (EIF). As of the end of 2021, KGF had issued guarantees totaling nearly €12 billion, supporting around 474,000 SMEs. In recent years, it has expanded its programs to include support for women and youth entrepreneurship, technology and innovation, and even strategic sectors like defense. Through these initiatives, KGF plays a vital role in fostering inclusive economic growth and strengthening Turkey’s financial resilience.