In Japan, 43.1% of small and medium-sized enterprises use the credit guarantee system

In Japan, approximately 1.45 million small and medium-sized enterprises—or 43.1% of the total—use the credit guarantee system. This was reported by Takashi Yamamoto, chairman of the Japan Federation of Credit Guarantee Corporations (JFG), at an international conference marking the 10th anniversary of the Kyrgyz guarantee institution.

According to him, small and medium-sized enterprises account for 99.7% of all companies in Japan and provide about 70% of employment.

“Although credit guarantee models vary from country to country, our common mission is to help small and medium-sized enterprises secure financing and grow, thereby creating jobs and contributing to economic development,” noted Takashi Yamamoto.

He explained that Japan’s first credit guarantee association was established in Tokyo as early as 1937. Currently, there are 51 credit guarantee associations operating in the country, united under the JFG.

The Japanese system involves collaboration between the national government, local authorities, financial institutions, credit guarantee associations, and specialized institutions. A portion of the risks borne by guarantee organizations is covered through the credit insurance system of the Japan Finance Corporation.

Yamamoto also focused on the role of the credit guarantee system during economic crises.

According to him, immediately after a crisis strikes, the speed and scale of support become key factors. As the situation stabilizes, the focus must shift to working individually with enterprises—improving management, restoring business operations, and promoting further development.

The JFG Chairman identified three key principles of a sustainable credit guarantee system:

• First—coordination among all participants in the system.
• Second—establishing the necessary infrastructure during normal times to be able to respond quickly to crises.
• Third—supporting businesses not only with financing but also with management tools.

In Japan, such support includes visiting businesses, bringing in specialists, and assisting with the development of business plans.

“The true value of credit guarantees lies in enabling a business to continue operating, preserve jobs, support its region, and ultimately gain the ability to secure financing on its own based on its own creditworthiness,” said Yamamoto.

He also highlighted the Kyrgyz guarantee agency’s decade-long journey and expressed hope for further development of cooperation between Kyrgyzstan and Japan in the areas of credit guarantees and support for small and medium-sized enterprises.