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Improving financial access to rural business
  • Agustin Palao Mendizabal
Agustin Palao Mendizabal
The University of Texas at Dallas

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Whether improved financial access after the implementation of a new program on a credit guarantee system leads to a change in targeted rural businesses. Data from Mexican Credit Guarantee System for rural enterprises.
A reduction in the average amount per guaranteed operations is found and it leads to a CGS shift in the targeted beneficiaries. Smaller rural producers are being included in the CGS due to changes in program eligibility conditions. The CGS beneficiary shift is assessed using Interrupted Time Series. Financial support and accessibility increased after the implementation of the Fondo Nacional de Garantías (FONAGA). The study shows temporal and permanent shifts on some of the credit guarantee operation parameters.