Financial Mechanisms

Blue Economy Guarantee Facility

This facility will provide a risk guarantee for loans, making it easier for coral reef-positive MSMEs to access the financing.

Drivers of Degradation Addressed

Land-Based Pollution

Overfishing and Destructive Fishing

Unsustainable Tourism

Wastewater

Coastal Development

The Blue Economy Guarantee aims to support coral reef-positive MSMEs. This facility will provide a risk guarantee for loans, making it easier for these businesses to access the necessary financing through a microfinance institution. Additionally, the facility will offer a comprehensive Technical Assistance (TA) package designed to equip MSMEs with the knowledge and tools they need to secure funding, expand their operations, and achieve long-term financial sustainability. The Blue Economy Guarantee Facility has not yet made any financial disbursements. UNCDF will provide a USD 1 million guarantee facility to leverage an additional USD 4 million in loans from micro-finance institutions

Author UNDP PNG CO

Region Pacific Islands

Country Papua New Guinea

GFCR Programme Gutpela Solwara, Gutpela Bisnis (Good Oceans, Good Business)

GFCR Convening Agent United Nations Development Programme

Sector Financial Mechanisms

Stage Concept/Design

Key Contact Elsie Simeon

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