A Credit Guarantee Corporation (CGC) will be set up to address barriers to access finance to start up businesses.
The institution is a project of the Government, working through the Small to Medium Enterprise (SME) Corporation, to make finance accessible for small businessmen and women.
According to the Government, the CGC is a credit supplementing institution within the financial system and acts as a guarantor to SMEs’ loans.
The CGC was first developed in Malaysia in 2013 and has received international recognition for its support in backing financing to SMEs.
In 2015, CGC Malaysia Berhad was accorded the Development Award 2015 by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).
According to the CGS Malaysia Berhad website, the institution has assisted over 442,000 financing to SMEs valued over RM61.5 billion (K46.6 billion)* since its establishment.
The establishment of a CGC in PNG is part of major reforms undertaken in the SME sector since 2014.
*Conversion according to exchange as at November 9 2016, MYR5.00 = PGK3.78 (via coinmill.com)