BPNG planning credit guarantee corporation to assist SMEs

THE Bank of Papua New Guinea will launch a credit guarantee corporation to help grow the small to medium enterprise (SME) sector in Papua New Guinea, an official says.
BPNG accelerator programme manager Dominic Sikakau said in Port Moresby yesterday: “We are looking to launch through this programme a credit guarantee corporation. It will be a company set up by BPNG, 60 per cent owned by BPNG and 40 per cent by the Government basically to provide guarantees to SMEs who have vital businesses but lack the important collateral that the banks require.”
He said this during a Green Global Growth Institute Pacific Green Entrepreneurs Network ceremony in partnership with the Emstret Holdings Ltd.
Sikakau said BPNG hoped to provide the service this year.
“We are hoping that there would be linkages with what is created now into what we want to establish,” he said. “Basically the credit guarantee provides access to finance to the existing businesses that want to access finance but do not have the platform.
“We hope that we will be able to provide that service this year.”