BSP belies report on RSF

 UNDER a risk sharing facility (RSF), Bank South Pacific is able to share with partners up to 50% of the losses it incurs on certain loans to small and medium enterprises (SMEs). 

The bank said this yesterday to an article published in the Post Courier on Wednesday headlined Remove SME red tape. 

The article quoted one John Kerega Gugl regarding the BSP SME lending activities, which the bank said was incorrect. 

Gugl said it was hard for Papua New Guineans to access loans from the K300 million SME credit facility deposited at Bank South Pacific (BSP).” 

The article said   loan applicants “must have 30% equity and operate a business for over two years”. 

BSP belied the statement, saying: “These assertions are incorrect … contrary to certain rumours and speculations, BSP has not been provided with any funding or cash by the International Finance Corporation (IFC), World Bank or Department of Commerce and Industry for distribution to SMEs. 

“Any reports or suggestions that BSP has been given funding for its SME lending programme are absolutely wrong. 

“The RSF programme is designed to support the expansion of existing businesses and not new business start-ups.”

“Under the RSF, BSP will be able to share with those partners up to 50% of the losses it incurs on certain loans to small and medium enterprises (SMEs). 

“Such risk sharing will help BSP continue to improve access to credit for SMEs in PNG.

RSF is not a grant scheme and does not represent a pool of money available for BSP to distribute to SMES.