Luciano Quinto Lanz

The potential role of SMEs’ Credit Guarantee Schemes to promote financial inclusion in Brazil

ABSTRACT

Difficult access to credit is one of the greatest obstacles to the survival of small and medium-sized enterprises (SMEs). One of the major reasons for this is the lack of guarantees. This situation is reflected in Brazil’s low competitiveness and high inequality. Guarantee Schemes provide this guarantee. This thesis analyzes the potential role of guarantee schemes to promote financial inclusion in Brazil. To achieve this objective the research analyzes Brazil competitiveness and inequality and their relation to credit access. The methodology used was a case study over the Fundo Garantidor para Investimentos (Investment Guarantee Fund - FGI), using a qualitative approach and descriptive statistics. Data collection relied on semi structured interviews, secondary sources, document analysis and operational data. The analysis used inter-organization trust building and repair models, the role of national development banks in the guarantee systems and the international benchmark for governance and effectiveness of guarantee schemes. The results demonstrate that FGI achieve adequate governance and established trust with the banks. By 2017, 26 banks contracted more than 32,000 operations worth 1.9 billion dollars, with additionalities comparable to the international benchmark. However, additional studies are necessary to establish a link between the guarantee schemes additionality and social and economic development.

Keywords: Guarantee Schemes; Micro, Small and Medium Enterprises; Additionality.

Luciano Quinto Lanz is a manager at the credit division at BNDES in Rio de Janeiro. He works developing partial credit systems for micro, small and medium enterprises. Prior to joining BNDES in 2010, he worked as corporative financial manager at Concremat (2009-2010), as financial and administrative manager at Globo Radio (2007-2009), as collection and credit manager at Embratel (2001-2007), as a senior financial analyst at Globo TV (1998-2001) and as a service representative and financial analyst at IBM Brasil (1989-1998). He holds a doctorate in Business (2014) and a Master in Business Administration (2004) from PUC-Rio, an MBA from IBMEC-RJ (1997) and he is graduated in administration at UFRGS (1994). He is a certified Project Management Professional from PMI and co-author of “Confiança nas Organizações” (Trust in Organizations) published by PUC-Rio and Elsevier in 2014. His areas of expertise are credit guarantee systems, credit, billing and collection, project management, organizational culture and change management.