Abstract

With particular incidence on information asymmetries, access to credit by small enterprises continues to be a challenge to sustain those who represent the backbone of local economies, especially in times of crisis. The use of public guarantee schemes, such as FOGAPE, seems to be an ideal solution, but not without problems, especially when their provisions are not properly coordinated with insolvency regulations. The lack of a systemic approach can cause difficulties for the reorganization of viable companies, leading to their liquidation, and thus increasing credit risk and making it difficult to access, an issue that this type of instrument aims to avoid.