BSP, govt discuss ways to deliver SME plan

BANK South Pacific is in talks with the government to look at ways to deliver the proposed small to medium enterprise (SME) incentive plan, chief executive officer Robin Fleming, pictured, says.
Fleming said this when responding to questions from The National about BSP’s response to Prime Minister James Marape’s recent remarks about looking at financial institutions to park money for the SME sector.
“BSP has had preliminary discussions with Government on the prospects of a SME finance facility that would have government support,” he said.
“It is contemplated that such a facility would involve the government providing funds to Bank South Pacific which would permit a lower cost facility to be made available to SME’s which would reduce the cost of their borrowing and also their loan repayments.
“A support facility of this type would not involve a Government guarantee and the package would be structured to reduce the cost of borrowing only.
“Further discussion will be held in the coming weeks with the Government to work through the form and structure of a proposed SME facility.”
Fleming said BSP was involved in the SME sector and already had three dedicated SME centres in the country.
“We already have three SME centres at Waterfront Port Moresby, Lae and Goroka and with a portfolio of smart business loans in excess of K100 million,” he said.
“Bank South Pacific’s first home ownership loan has been most successful with over 796 loans.
“It has a value of K230 million in first home loans funded at an interest rate of four percent which now exceeds our standard home loan product which had almost 800 loans funded with a value of K155 million.
“The interest rate on our standard home loan is now 6.5 per cent and is the lowest in Papua New Guinea.”