Posted By Staff Reporter
The Bank of Papua New Guinea has finally allocated K30 million towards the creation of the Macro, Small to Medium Enterprise (MSME) credit guarantee facility.
BPNG Governor Loi Bakani said they were only waiting for a K20 million contribution from the government to fund the facility.
“Given the importance of the MSME sector, the central bank and government are now working on establishing this credit guarantee corporation,” said Bakani.
He said this will be a facility for MSMEs to access when getting loans from financial institutions.
MSME Council President Des Yaninen explained that the credit guarantee corporation would guarantee security for MSMES wishing to get loans.
“Basically, MSMEs need to have some form of security when applying for a loan, because they don’t have security, they don’t qualify for a loan and don’t access funding,” said Yaninen.
He said the MSME guarantee facility is an organization put to help by putting up a guarantee for MSMEs.
Yaninen said that all they have to do is pay a little fee and credit guarantee corporation will put the guarantee for them to borrow a loan.
He said this was based on the Malaysian credit guarantee corporation model and was something BPNG had been working on for a while now.
Yaninen said the MSME Council has been involved in the process and they were looking forward to getting it off the ground so it would make MSME funding more accessible for the people.
“All we are waiting for now is the implementation,” said Yaninen.
The proposal has been submitted to the National Executive Council twice for approval in 2012 and 2019.
Source: PNG Marketing Magazine
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