SUNBIZ

Loans Under SME Credit Guarantee Scheme Reach $50m

Outstanding loans granted under the SME Credit Guarantee Scheme reached approximately $50 million at the end of April 2015. This has been confirmed by the Reserve Bank of Fiji deputy
23 May 2015 08:45
Loans Under SME Credit Guarantee Scheme Reach $50m
From left: Chief Advisor to the Governor of the Reserve Bank of Fiji, Lorraine Seeto, Deputy Governor of RBF, Ariff Ali, ABC’s Pacific Economic & Business Reporter, Jemima Garrett and Government Statistician, Epeli Waqavonovono during a four-day workshop on Budget Reporting at the Tanoa Plaza Hotel in Suva. The workshop which ended yesterday was organised by Australia’s Pacific Media Assistance Scheme (PACMAS) photo: RACHNA LAL

Outstanding loans granted under the SME Credit Guarantee Scheme reached approximately $50 million at the end of April 2015.

This has been confirmed by the Reserve Bank of Fiji deputy Governor, Ariff Ali.

The scheme is managed by the RBF with funds provided by the Government totalling $4 million during the past three years.

Approximately 850 SME businesses have benefited from this Scheme where the maximum interest rate that financial institutions can charge them is 10 per cent per annum.

Under the Scheme, Government would pay a maximum 50 per cent or $50,000 whichever is lower to the financial institution if the SME loan goes bad.

Mr Ali said to-date, only two loans have gone bad and the RBF has paid $38,000 to the respective banks for these two SMEs.

“This equates to less than one per cent of the total loans given under the scheme,” he said.

Mr Ali believes there is still room for improvement to help the SME sector further.

He has stressed SMEs should seek more information on how the scheme works by talking to the commercial banks.

Feedback:  rachnal@fijisun.com.fj

 



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