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Low Loan Uptakes By The SMEs A Concern For PIPSO

Despite a high liquidity in the banking system, concerns have been highlighted over the lack of uptake of loans by the small-medium enterprises (SMEs). Pacific Islands Private Sector Organisation (PIPSO)
20 May 2015 10:21
Low Loan Uptakes By The SMEs A Concern For PIPSO

Despite a high liquidity in the banking system, concerns have been highlighted over the lack of uptake of loans by the small-medium enterprises (SMEs).

Pacific Islands Private Sector Organisation (PIPSO) chief executive, Mereia Volavola, said the issue was the SMEs were not being able to get access to finance which could provide a boost for their business.

She highlighted this during the PACMAS Budget Reporting Workshop for Fijian journalists held at the Tanoa Plaza Hotel in Suva.

The Reserve Bank of Fiji has indicated that liquidity as of April 30 was $603.7 million

Ms Volavola stressed it was easier for the larger corporate companies to get loans who were also able to negotiate the terms to get better interest rates because of the large amount of borrowings.

“So they end up paying less interest rates. But that is not the same with the SMEs who have to give proposals and they cannot dictate the terms,” she said.

Ms Volavola said because of the lack of human resource capacity, they do not have the ability to put good proposals for loans before the banks.

“Many of them do not even know how to do the profit and loss statements,” she said.

Feedback:  rachnal@fijisun.com.fj

 




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