BSP gets another K100mil for SME scheme

THE Government has given another K100 million to Bank South Pacific Financial Group Ltd (BSP) for its small-to-medium enterprises (SMEs) credit enhancement scheme.
This is the 2021 component of the Government’s yearly budgetary SME allocation parked with the bank.
With the previous 2020 funding from the Government, BSP has already loaned out over K120 million assisting more than 300 individual businesses from its soft lending facility.
Prime Minister James Marape said the partnership with BSP had so far helped a good number of Papua New Guineans.
Marape said the Government had committed an annual funding of K100 million to the bank for the initiative over the next 10 years.
“BSP can have that as an added layer of security and lend to Papua New Guineans who want to be in the business space,” he said.
“Today, we are giving another K100 million to BSP, that is money that was meant for 2021.
“Every year, that K100 million commitment goes to BSP, our number one bank.
“BSP is not just lending the K100 million, it is like collateral or an added guarantee they are keeping.”
BSP group chief executive officer Robin Fleming said since November 2020, the bank had lent out more than K120 million. “More than 300 individuals have been able to benefit from that credit enhancement scheme,” he said.
“It is funds held in trust for the Independent State of PNG.
“It’s not just lending the money, its lending the money out ensuring that customers are able to repay those monies and that’s been a big success in providing those loans in the first place.
“Majority of those customers continue to repay those loans.”
Fleming said with the assistance of the Department of Commerce and Industry, the bank was looking to get traction in areas outside of Port Moresby and Lae.