Bank of PNG: 10 institutions to give loans

SMALL business entrepreneurs with inadequate collateral can access funding from 10 financial institutions in PNG, says Bank of PNG Governor Elizabeth Genia.
The Credit Guarantee Corporation Limited (CGC) last week signed agreements with the 10 institutions to provide credit guarantees to support small-medium enterprises (SMEs).
Genia said: “We are here to witness the signing of an agreement between the CGC and PNG’s leading financial institutions, whereby CGC will provide a credit guarantee to the institutions.
The guarantee will reduce the credit risk of the lending institutions and allow them to extend finance to a wider range of customers and support ventures that may have previously been considered too risky.”
She said the arrangement was in line with strategic government initiatives designed to build the PNG economy, including the SME policy. “The CGC is a credit supplementation institution established to assist entrepreneurs and businessmen to have ready access to financial credit through the various financial institutions it has signed deals with.
“This will go towards assisting viable businesses to grow particularly entrepreneurs who lack collateral but needing much financial credit facilities through guarantee schemes.
The institutions include FinCorp, Financial & Private Sector Staff Savings & Loans Society Limited, Kina Bank, Mi-Bank, Moni Plus, Nasfund Contributors Savings and Loan Society Limited, Nambawan Savings and Loan Society Limited, Peoples Micro-Bank Limited, Resources & Investment Finance Limited and Women’s Micro-bank.
Chief Secretary Ivan Pomaleu said the Government had allocated K3million for the credit guarantee cooperation in the 2024 budget to go towards its administration.