BSP: K55mil-K58mil loaned to SMEs under credit scheme


BANK South Pacific (BSP) Financial Group Ltd has loaned out K55 million to K58 million as part of its Small Medium Enterprise (SME) credit enhancement scheme.
The bank received K100 million as security from the Government to roll out soft lending for SMEs last year.
Providing an update on the rollout, chief executive officer Robin Fleming said it had another K50 million to loan out.
“Our retail team in that SME are have been involved in a number of awareness programmes with the Department of Commerce and Industry around PNG to provide much awareness and training as possible,” he said.
“Certainly, we have been successful in getting K55 million out and we are confident that we will continue the draw down process with customers who do qualify.
“We have also adjusted some of the qualification requirements reducing the equity down to 10 per cent and also the increase the turnover threshold customers in that SME category. It is an ongoing fund and as more businesses begin to repay, it becomes a self-sustaining fund to the extent where we are able to keep our default rates at a level which is consistent as where we contemplated when we established the programme.”