Guarantee Processes
In compliance with the principles and fundamentals of participation banking, KFK may provide guarantees based on its own equity as well as various guarantees based on resources provided by the Ministry. In addition, guarantee schemes based on funds from various domestic and international sources are planned to be implemented in the coming period.
KFK works with participation banks on a risk-sharing basis and may guarantee up to a certain portion of the financing amount. Within the scope of guarantees for financing extended by banks, KFK primarily values the bank's opinion in determining the creditworthiness of companies, and is based on the principle that a certain portion of the credit risk is assumed by the bank.
The types of guarantees are as follows:
Equity-Backed Guarantees
This is a guarantee system for beneficiaries who wish to use the guarantee packages announced by the Institution from its own equity, whose applications are primarily assessed by lenders according to their creditworthiness. Beneficiary applications submitted to the Institution by lenders are evaluated in line with the Institution's strategies and finalized by taking the lenders' opinions into account.
For guarantees provided under KFK's Equity Guarantee System, the Institution also assesses the creditworthiness of beneficiaries independently of the lenders and allocates a guarantee limit accordingly.
Treasury-Backed Guarantees
This is a guarantee system in which, based on the credit limit allocated by KFK to banks, beneficiaries are assessed on the basis of the banks' internal rating scores without any additional review by KFK of the beneficiary's creditworthiness, provided that the guarantee remains within a certain indemnification cap calculated on the guarantee amount provided to the portfolio.
Guarantee Processes
Guarantee Processes
In compliance with the principles and fundamentals of participation banking, KFK may provide guarantees based on its own equity as well as various guarantees based on resources provided by the Ministry. In addition, guarantee schemes based on funds from various domestic and international sources are planned to be implemented in the coming period.
KFK works with participation banks on a risk-sharing basis and may guarantee up to a certain portion of the financing amount. Within the scope of guarantees for financing extended by banks, KFK primarily values the bank's opinion in determining the creditworthiness of companies, and is based on the principle that a certain portion of the credit risk is assumed by the bank.
The types of guarantees are as follows:
Equity-Backed Guarantees
This is a guarantee system in which beneficiaries wishing to use the guarantee packages announced by the Institution from its own equity are evaluated; applicants' creditworthiness is assessed primarily in line with the Institution's strategies, and the credit risk is shared at a certain ratio, taking the lenders' opinions into account.
For guarantees provided under KFK's Equity Guarantee System, the Institution also assesses the creditworthiness of beneficiaries independently of the lenders and allocates a guarantee limit accordingly.
Treasury-Backed Guarantees
This is a guarantee system in which, based on the credit limit allocated by KFK to banks, beneficiaries are assessed on the basis of the banks' internal rating scores without any additional review by KFK of the beneficiary's creditworthiness, provided that the guarantee remains within a certain indemnification cap calculated on the guarantee amount provided to the portfolio.