Ten financial institutions in the country will now be able to extend financial support to a wider range of Small and Medium Enterprises (SMEs) after they were provided credit guarantee by the Credit Guarantee Corporation (CGC) of Papua New Guinea (PNG). This was achieved with the signing of the heads of agreements between the ten financial institutions and CGC in a small but significant ceremony in Port Moresby yesterday. The signing was descried as a milestone for the CGC by the Board Chairman, Mr. Robin Fleming. Having being established in 2022, the CGC will now execute its functions in supporting the SMEs and the micro businesses through these financial institutions. “Credit enhancements are really important tools in being able to manage and assist financial institutions to manage debts associated with smaller businesses in particular, and provide some form of products to ensure we can offer a product for SMEs in PNG and also hopefully to reduce the risk of loses associated with customers,” said Mr. Fleming. Bank of Papua New Guinea (BPNG) Governor, Ms. Elizabeth Genia said the Bank is in support of this initiative and is committed to see its success. “CGC will provide credit guarantee to financial institutions, the guarantee will reduce the credit risk of the lenders (The financial institutions) and allow them to extend finance to customers and support ventures that may have been previously considered too risky,” said Ms. Genia. She explained that up until now the lack of traditional collateral acceptable to the lending institution, has meant that many micro and SME entrepreneurs had been unable to access funding. “No funding means no ability to grow or take advantage of potential growth, potential opportunities; the enterprises still remains small. The hard work of the owners does not attract the potential rewards it deserves. So, in many cases their enterprises shrivel and die.” “So, with the commitment and support of the financial institutions who are party to this agreement, MSME entrepreneurs will be able to water their small seeds of enterprise with appropriate funding and take fuller advantage of the business training they can also access through CEFI (Center for Excellence in Financial Inclusion).” The ten financial institutions that signed the agreement with CGC are FinCorp, Financial & Private Sector Savings & Loans Society Limited, Kina Bank, MiBank, Moni Plus, Nafund Contributors Savings & Loans Society Limited (NCSL), Nambawan Super Savings & Loans Society (NSLS), People’s Micro Bank, Resource & Investment Finance Limited and Women’s Micro Bank Limited.