Window for Diaspora Investments

he Window for Diaspora Investments aims to support investments in private enterprises established by our compatriots living and working abroad.

WHAT IS CONSIDERED A DIASPORA INVESTMENT AND WHAT ARE THE LEGAL REQUIREMENTS?

Diaspora investors should express a clear intention to invest in Kosovo by:

• Initiating the establishment of a new business, or
• Supporting an existing business in Kosovo founded by a diaspora investor.

Businesses with more than 36 months of experience do not qualify for this window.

The ownership structure of newly established businesses by diaspora investors must be one of the following:

1. Fully owned by the diaspora investor.
2. A partnership with Kosovo residents (e.g., business partners, relatives, friends living and working in Kosovo).
3. If the diaspora investor establishes a business with a foreign co-investor (non-resident of Kosovo).

In all three cases mentioned above, the diaspora investor must own at least 30% of the business. The investor should support the business idea with a business plan.

Compliance with Legal Requirements and Regulations:

Applicants must comply with all laws, regulations, and guidelines governing investments and business activities in Kosovo. Additionally, the applicant will undergo a due diligence process to ensure compliance with anti-money laundering and counter-terrorism financing standards by the registered financial institution and must not be involved in any legal proceedings or included in any international sanctions lists.

WHICH BUSINESSES QUALIFY?

Micro, small, and medium enterprises (MSMEs) must meet the following criteria:

• Privately owned and established by a diaspora investor.
• Registered with the Kosovo Business Registration Agency (ARBK). For more information, please visit: https://arbk.rks-gov.net/
• Businesses established by the diaspora with no more than 36 months of operational experience.
• Inclusive of various sectors except those prohibited by the Environmental and Social Management Policy of FKGK.
• Investors with a good credit history in their respective countries of residence or in Kosovo.
• Businesses with fewer than 250 employees.

Additional Information on the Kosovar Origin of the Business Owner:

• All those who were born and lived in Kosovo but emigrated and have lived abroad for more than three years.
• Descendants (new generations) of Kosovar parents, extending to the second generation, with origins from Kosovo.

WHAT CREDITS CAN BE OBTAINED THROUGH THE DIASPORA INVESTMENT WINDOW?

Eligible credits that meet the following criteria will be accepted for benefits from the Diaspora Investment Window:

• The minimum loan amount is €3,000.
• The maximum loan amount is €3,000,000.
• The minimum guarantee amount is €1,500.
• The maximum guarantee amount is €2,000,000.
• The minimum repayment term for the guaranteed loan is 3 months.
• The maximum repayment term for the guaranteed loan is 84 months.
• The purpose of the loan can be for various business investments (fixed assets, equipment, working capital).

TYPES OF CREDIT

• Loan; Credit line; Overdraft.

WHAT ARE THE CHARACTERISTICS OF THE GUARANTEE?

• Credit guarantees cover up to 80% of the principal loan amount, but not exceeding €2,000,000. The percentage of coverage depends on the value of the initial investment.
• The maximum loss limit is 15% at the portfolio level.
• The investor’s participation in the initial investment is mandatory and must be at least 20%.

Guarantee coverage percentage based on the initial investment/loan ratio:

WHAT IS THE APPLICATION AND DECISION-MAKING PROCESS?

The potential borrower (MSME) does not apply for a guarantee but applies for a loan at one of the Registered Financial Institutions (RFI) of FKGK.

The RFI, after conducting the usual credit analyses and applying risk assessment standards, will approve the loan if the company meets the FKGK criteria. The RFI then places the loan under the credit guarantee of FKGK.

Once the loan is approved by the RFI and entered into the FKGK Information Management System, FKGK accepts the loan under the credit guarantee.