The Government announced the introduction of a $500 million pilot Credit Guarantee Scheme providing loans on expenses of goods and services for export.
The scheme is aimed at small and medium enterprises (SMEs) for purposes such as working capital or the purchase of raw material and equipment.
A spokesman for the Trade and Industry Bureau said that in contrast to larger enterprises, SMEs found it more difficult to obtain loans from institutions because of their lack of sufficient capital assets as collateral or long credit records.
'With easier access to financing, SMEs can enjoy a better capacity to invest in new technology, move into high value-added production and improve productivity,' the spokesman said.
Under the proposed scheme, each guarantee will be limited to 50 per cent of the loan amount approved or up to $2 million for each individual loan, whichever is the smaller amount.
Total coverage for an applicant at any one time will be limited to not more than $6 million.
