Case Study
USAID Development Credit Guarantees
Authors: Michèle Manpreet Ryatt and Georgia Thorne
The United States Agency for International Development (USAID)’s Development Credit Authority (DCA) provided partial credit guarantees to help underserved borrowers access financing services. Private lenders used guarantee agreements to extend financing to borrowers in new sectors and regions which enabled the mobilisation of local private financing to those who needed it most. By opening up local channels of financing, this mechanism empowered entrepreneurs in developing countries.