Government raises MSME Credit Guarantee Scheme from 50% to 60%

Minister for Economy and Attorney-General Aiyaz Sayed-Khaiyum says the government will pay 60% on the outstanding defaulted Small Micro-Enterprise loans with up to a limit of $60,000.

While announcing the concessional loans for Micro, Small and Medium Enterprises, Sayed-Khaiyum says the MSME Credit Guarantee Scheme that the government had set-up in 2012 with the Reserve Bank of Fiji to assist businesses access finance from financial institutions will be increased from the 50% previously stated to 60%.

He says as of March this year, 1,111 small businesses with over $104.6 million in outstanding loans was covered under this scheme.

He adds the interest rate charged was at 10% per annum.

The Attorney General says this scheme will enable financial institutions such as banks to feel comfortable in lending money to small businesses.