BPNG gets K2mil for work on Credit Guarantee Corporation: Bakani

THE Bank of Papua New Guinea has received only K2 million from the government to begin work on the Credit Guarantee Corporation that was approved by the Cabinet last November.
Governor Loi Bakani while acknowledging the call made by the National Planning and Monitoring Minister Richard Maru in Parliament recently on the progress of the credit guarantee corporation said that K20 million was promised but they had only received K2 million.
“K20 million is promised but we’ve only received K2 million so far,” he said.
“We’ve done some work without state support.”
Bakani said they had already mobilised some funds from previous guarantee schemes like the one with Bank South Pacific (BSP) and the Department of Commerce and Industry, both funded by the International Finance Corporation (IFC).
“Those are guarantees that are run differently,” he said.
“What we want to do is create this entity and bring all those monies.
“We got somebody here already who is fulltime on the job.
“He’s got a structure and he’s going to create this small corporation here.
“It’s going to be a licensed entity.”
Bakani said guarantees would be given out once they have agreed on the arrangement of how the credit rules.
“Then we’ll ask for the participating institutions to come and be members of the guarantee corporation.
“Once they become a member, then they are eligible to lend and can access the guarantees, particularly for the small medium enterprises and not for corporates.
“They have to meet certain requirements. We have an SME policy.”