Credit Guarantee Corporation Limited Signs Agreements with Financial Institutions to Provide Credit Guarantee for SMEs
Port Moresby, Papua New Guinea – January 19, 2024 – The Credit Guarantee Corporation Limited (CGC) is pleased to announce the signing of groundbreaking agreements with ten leading financial institutions in the country aimed at providing critical credit guarantees to support small and medium-sized enterprises (SMEs) in Papua New Guinea (PNG).
These landmark agreements reinforces CGC's commitment to bolstering the growth and development of SMEs, which are the backbone of the PNG’s economy. By partnering with financial institutions, CGC aims to alleviate the obstacles faced by SMEs in accessing affordable credit to develop and grow their business and ultimately contributing to economic growth and job creation in the country.
Under the newly inked agreements with FinCorp, Financial & Private Sector Staff Savings & Loans Society Limited, Kina Bank, MiBank, Moni Plus, Nasfund Contributors Savings and Loan Society Limited, Nambawan Savings and Loan Society Limited, Peoples Microbank Limited, Resources & Investment Finance Limited and Womens Microbank, CGC will provide credit guarantees to the partnering financial institutions, enabling them to extend much-needed credit facilities to SMEs. Through this collaboration, SMEs will have improved access to financing, allowing them to expand their businesses, create employment opportunities, and contribute to the overall economic growth of PNG.
In a speech delivered for the Prime Minister by the Chief Secretary Mr. Ivan Pomeleu, he said, “Today marks a significant step forward in our collective and sustained efforts to foster economic growth, support small and medium-sized enterprises (SMEs), and create avenues for increased employment opportunities.”
Mrs. Elizabeth Genia, Governor of the Bank of PNG said, “CGC’s role is a strategic enabler and the signing of the agreements today is also the start of the long journey to achieving the various strategic objectives set by the Government, notably the SME Policy, the PNG Development Strategic Plan, Vision 2050, the Financial Inclusion Policy, the Green Finance Policy and the recently launched Medium Term development plan IV, amongst others.
Mr. Dominic Sikakau, CEO of CGC, expressed his enthusiasm about the agreements, stating, "These partnerships mark a significant milestone in our efforts to empower SMEs and drive economic growth in PNG. By providing credit guarantees to our partnering financial institutions, we are facilitating increased access to finance for SMEs, nurturing entrepreneurship, and encouraging growth across different sectors of our economy."
Mr. John Cholai, Chairman of Nambawan Super Savings and Loans (NSLS) in his remarks said “CGC provide NSLS the confidence to enter the MSME space, a space that for a long time has been occupied by commercial banks. The support will allow us to grow our capacity and capability into expanding out more to the MSME space and off course the self-employed sector. 0ver 43% of our membership are females and the CGC offers us great opportunity to support women in business, while promoting ‘saving first culture’.”
The signing ceremony was attended by Chief Secretary on behalf of the Prime Minister, CEOs of various participating financial institutions, the Governor of Bank of PNG, representatives from various government departments and donor agencies, underscoring the collaborative and concerted effort to address the financing needs of SMEs in PNG.
The agreements signify a crucial step forward for CGC in supporting the growth and sustainability of SMEs, as well as the overall economic development of PNG. CGC remains dedicated to fostering an environment where SMEs can thrive, innovate, and contribute to the nation's prosperity.
Credit Guarantee Corporation Limited Signs Agreements with Kada Poroman Microfinance Limited and East New Britain Savings and Loan Society.
Kokopo, East New Britain Province, Papua New Guinea – January 29, 2024 – The Credit Guarantee Corporation Limited (CGC) has signed agreements with Kada Poroman Microfinance Limited and East New Britain Savings and Loan Society.
The signing of these two financial institution brings the number of CGC’s partner financial institutions (PFIs) to 12 in the country. The partnerships with the financial institutions will allow CGC to provide credit guarantee to these financial institutions to allow SMEs to access finance to develop and grow their business and ultimately contribute to economic growth and job creation in the country.
Mr. Dominic Sikakau, CEO of CGC stated that CGC is committed to fostering a mutually beneficial relationship with our partners in the financial sector and this is the start of what we anticipate to be a long and fruitful partnership to serve the MSMEs in East New Britain Province. “The signing comes at the right time when both institutions have rebranded their corporate image to showcase their new direction and values to their customers and partners. Together, we will empower entrepreneurs, MSMEs, and aspiring individuals in East New Britain Province to pursue their ambitions with confidence.”
Mr. Sankar Chetteti, CEO of Kada Poroman Microfinance Limited added that the CGC will provide good support for the financial institutions to minimize their credit risk. “Alot of SMEs require credit however lending from financial institutions like ours is struggling. Institutions like Kada Poroman whose focus is on the informal sector needs the support from CGC to reduce our credit risk.” He continued that with the support from CGC, financial institutions like Kada Poroman Microfinance Limited can aggressively support the SME sector.
Mr. Lopa Alua, Manager Member Services, East New Britain Savings & Loan Society before signing the agreement said, “Collectively we share the vision to help our SMEs to improve their lives, empower businesses and bring innovation into the SME sector and create economic prosperity for the province.” He said the signing of agreements between CGC and the financial institutions will benefit SMEs as access to collateral and requirements to access loans is very stringent and this partnership will enable access to finance for SMEs in East New Britain Province.
The agreements signify a crucial step forward for CGC in supporting the growth and sustainability of MSMEs especially for East New Britain Province.
Kokonas Indastri Koporesen and Credit Guarantee Corporation Limited Signs MOU to Provide Credit Guarantee for MSMEs in the Coconut Industry
Port Moresby, 05 March, 2024 - Kokonas Indastri Koporesen (KIK), the regulatory body of the coconut industry in Papua New Guinea (PNG), and Credit Guarantee Corporation Limited (CGC ), the new entity set up to provide guarantee to facilitate access to finance for MSMEs, have joined forces to promote access to finance for processors of high-value coconut products. The two organizations have signed a Memorandum of Understanding (MoU) to formalize their collaboration and work together towards advancing the coconut industry in the country.
The MoU signing ceremony took place on 05th March to mark the beginning of this strategic partnership. The agreement outlines a framework for cooperation that aims to enhance financial support and opportunities for businesses involved in the production and export of high-value coconut products (HVCP).
Under this partnership, KIK and CGC PNG will collaborate on various initiatives to support the growth and sustainability of the coconut industry in PNG by leveraging their respective expertise and resources. The two organizations will endeavor to address challenges related to access to finance and provide tailored solutions that meet the needs of coconut businesses across the coconut value chain.
Through this collaboration, KIK and CGC PNG aim to empower coconut farmers, processors, and exporters with the necessary financial resources to expand their operations, improve product quality, and access new markets. By promoting access to finance for HVCP, the two organizations are committed to driving economic development, creating employment opportunities, and enhancing the competitiveness of the local coconut industry.
Speaking about the partnership, Mr. Alan Aku, Managing Director of KIK, expressed enthusiasm about the collaboration with CGC PNG, stating, "This MoU represents a significant step forward in our efforts to support the growth of the coconut industry in PNG. By working together with CGC, we aim to unlock new opportunities for coconut businesses and contribute to the sustainable development of the sector. Our works are underway, we are working closely with the Pacific Community (SPC) through a business friendly program to build the capacity of Coconut SME’s on coconut value chain and on how to be competitive and profitable.”
Similarly, Mr. Dominic Sikakau CEO of CGC, emphasized the importance of the partnership in facilitating access to finance for processors of high-value coconut products, saying, "We are excited to partner with KIK to provide financial solutions through our partner financial institutions to enable coconut businesses to thrive and succeed in today's competitive market. Together, we can make a positive impact on our historic industry and drive economic growth in PNG."
As the collaboration between KIK and CGC PNG takes shape, both organizations are committed to piloting targeted initiatives that support the advancement of the coconut industry and create a more conducive environment for MSMEs in the sector.
For media inquiries or more information about the partnership between KIK and CGC please visit www.kik.com.pg and www.cgc.com.pg
Credit Guarantee Corporation Limited Signs Agreement with TISA Community Finance Limited
Credit Guarantee Corporation Limited (CGC) is pleased to announce the signing of an agreement with Tisa Community Finance (TCF) to provide credit guarantees to support MSMEs in PNG.
The partnership with TCF now adds to a total of 13 financial institutions having partnerships with CGC to provide access to finance for eligible MSMEs. MSMEs who are customers of the 13 financial institutions can benefit from the credit guarantee issued by CGC through these partner financial institutions.