Maru: Set up credit facility

GIVING low-interest loans to small-to-medium enterprises (SMEs) is not enough for citizens to expand their businesses, Yangoru-Saussia MP Richard Maru says.
Maru in a statement said people needed to meet the collateral and high equity requirements of the bank.
He urged the Government to establish a credit facility to provide a guarantee for high business loans.
He said it was difficult for people to save money because of extended families.
“The demand on the few informal jobs is high because of the wantok system as we have no social security system,” he said.
“More citizens should be in business if they are assisted by Government to secure loans from leading institutions,” he said.
He said a guarantee corporation had been approved three years ago and the Bank of PNG was to set it up.
“This is the most important support that should be given to enhance SME sector growth.”