Partnership forged gives SME borrowers more flexibility to borrow

FINANCE Corporation Ltd (FinCorp) has announced a risk sharing partnership with the Risk Share Facility Trust managed through the Bank of Papua New Guinea (BPNG) with the assistance of the Asian Development Bank and Australian Aid.
According to a statement from FinCorp, the partnership will provide for small and medium enterprises (SMEs) borrowers more flexibility to borrow at the same time mitigating part of the normal risk involved with this type of lending.
With Bank of Papua New Guinea recently released financial sector development strategy and national financial inclusion policy, FinCorp acknowledged this partnership would assist SMEs throughout the country.
FinCorp chief executive Tony Witham said the firm was pleased to be the first licenced financial institution outside of the micro banks to participate in the partnership.
“This initiative by the BPNG falls in line with the government’s focus on small to medium enterprises, and allows the lenders more comfort in what would normally be available,” he said. Witham thanked BPNG assistant governor Ellison Pidik and the risk sharing partnership team for their foresight and drive to ensure the partnership was in the best interest of all parties including the SME businesses of PNG.