Term:
Partial credit guarantee
Definition:
A partial credit guarantee (PCG) represents a promise of full and timely debt service payment up to a predetermined amount. Typically, the sum that IFC pays out under the guarantee covers creditors irrespective of the cause of default. The guarantee amount may vary over the life of the transaction based on the borrower's expected cash flows and creditors' concerns regarding the stability of these cash flows.
Domain:
ICT
Source:
ESCWA UNTERM Portal