Photo: Credit Guarantee Corporation
The Bank of Papua New Guinea has launched the Credit Guarantee Corporation to help sustain and increase the growth of the Small to medium enterprise (SME) sector. Small businesses in Papua New Guinea will now leverage on the Credit Guarantee Corporation (CGC) to grow their businesses.
The Credit Guarantee Corporation launching on Tuesday 29th of March 2022 at the APEC House in Port Moresby will see it provide financial collateral as security to small businesses operated by Papua New Guineans to grow their Businesses. SME’s can now be able to secure a guarantee from the CGC to start or expand their business.
According to the Government the CGC is a credit supplementing institution within the financial system and acts as a guarantor to SME’s loans.
BPNG acting Director Benny Popoitai clarified that CGC will provide loan security to financial institutions on behalf of PNG owned businesses.
Popoitai Said “The Credit Guarantee Corporation will be owned by the Central bank and will be managed independently by the Bank of PNG under its Laws”
The CGC was initially approved by the government and was first announced by then Minister for National Planning Mr. Richard Maru during his presentation of the Public Investment program in the 2019 budget press lock- up.
Prime Minister James Marape Acknowledged the work of the Bank of Papua New Guinea for implementing the NEC’s decision by launching the CGC. He made a government commitment of K50 million to carry out CGC operations.
The establishment of the CGC in PNG is part of major reforms undertaken in the SME sector since 2014.
