Growth Guarantee Program

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Linking Poverty Focused Institutions to Local Capital Markets

In 2005, Grameen Foundation launched the Growth Guarantee (GG) program to help microfinance institutions (MFIs) establish credit relationships with local banks and build critical access to local currency financing. 

The GG program was initiated to address a lack of capital supply for MFIs in the face of substantial unmet demand for microfinance loans. Where capital was available, 92 percent of the funding was denominated in hard currency (USD or Euro), which created excessive foreign exchange risk at the MFI level. The GG program was designed to address both of these issues by opening up new local sources of capital, effectively offering both a “credit introduction” for the MFI and a “credit enhancement” for the local bank in the form of a letter of guarantee. 

The Growth Guarantee program is an innovative vehicle structured in partnership with Citi Bank and committed philanthropists who seek to leverage their assets for lasting impact.   

In its first eight years, the program generated more than $200 million in local currency financing for 29 institutions in 12 countries.

Growth Guarantee Portfolio Clients


KOMIDA’s mission is to motivate and empower poor women by providing them and their families access to a comprehensive range of financial services through an institution that is professionally, transparently, and sustainably managed and, more importantly, owned by them. They operate in the rural areas of Aceh, West and Central Java. 


COCLA’s mission is to contribute to economic and social development of its member cooperatives and their members. They provide competitive and quality services related to the processing and marketing of coffee and other products, promoting the integral development, entrepreneurship, and environmental sustainability practices of their member organizations. 

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