CGC: Non-performing loans of SMEs on high side    
Industry News

Source : The Malaysian Insider

KUALA LUMPUR, June 1 — Non-performing loans (NPLs) of small and medium enterprises (SMEs) are on the high side, says Credit Guarantee Corp Malaysia Bhd (CGC) chairman Datuk Zamani Abdul Ghani.

He said while SME outreach was important the quality of loans should also be given due attention.

“We hope this is checked at the source of loan generation to ensure NPLs are kept at a more manageable level,” he said at the CGC Top SMI Supporter Award presentation ceremony here today.

However, he did not reveal the level of NPLs among SMEs.

Despite the tight financial environment, SMEs continued to enjoy access to financing with loans outstanding accounting for about 40 per cent of total business loans of the banking and financial institutions system as at end-2009.

“We stepped up efforts and reached out to more than 14,000 SMEs, guaranteeing close to RM3.1 billion in 2009,” said Zamani, who is also Bank Negara Malaysia deputy governor.

On the awards presented today, Zamani said the five recipients, Malayan Banking Bhd, Public Bank Bhd, RHB Bank Bhd, CIMB Bank Bhd and Bank Islam, contributed significantly to CGC’s performance.

“Participation by financial institutions in 2009 was encouraging,” he said, adding that the five recipients jointly accounted for 51 per cent of total business financing guaranteed in 2009.

Maybank was also awarded the coveted “Best Financial Partner” award for contributing the most towards CGC’s quality assets.

On another note, Zamani also called for greater participation by financial institutions in the RM1.5 billion Green Technology Financing Scheme (GTFS) which was launched in January. — Bernama

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