The Financing Facilities Guarantee (FFG) is intended to protect the beneficiaries i.e. lending institutions against the risk of loss by reason of default by the borrowing entity.
The FFG is applicable to a range of financing facilities such as short-term and long-term financing facilities as well as working capital facilities.
Borrowers would stand to benefit from better access to financing from potential lending institutions at a reasonable cost
Lending Institutions would be able to manage their credit and default risk when extending financing to potential borrowers. At the same time, the FFG can potentially be a capital management tool for lending institutions