Title Financing Small and Medium Enterprises in Myanmar Author(s ...

Credit Insurance System
Credit Guarantee System
Source: Osamu Tsukahara (2005)
Under this system, loans made to SMEs by private financial institutions are
guaranteed by credit guarantee corporations (there are 52 CGCs in Japan at present)
up to 100 percent. The guarantee arrangements are again reinsured by JASME up to 80
percent of insurance payment. Central governments and local governments also
monitor and supervise these institutions and arrangements to ensure the proper
functioning in the area of SME financing. JASME also conducts three types of
securitization support programs, namely, purchase type, guarantee type, and synthetic
CBO type (by accepting unsecure loans extended to SMEs or unsecure bonds issued by
SMEs and securitizing them). It is also actively make direct financing to SMEs 82 .
82 Osamu Tsukahara, Recent Development in SME Finance in Japan, JASME, July 2005