The international Finance
Corporation (IFC) is assisting small to medium term enterprises (SMEs) in Papua
New Guinea (PNG) by way of convincing the commercial banks to lend to SMEs as
well as lending its own money.
“We try to encourage the
commercial banks to lend money to the SMES because one major constraint to SMEs
in PNG is for the SMEs to get loans from
the commercial banks to expand their businesses.
“Historically, banks normally
refuse to lend to the SMEs” says Laura Baily, the country manager of the World
Bank group in Papua New Guinea.
IFC has therefore stepped into providing
the SMES with training and money.
“We train the SMEs to build their
credit worthiness.
“Then we lend them some money as
safety net to expand their business.
“The money comes from the world
bank” Baily says.
IFC is also in dialogue with the
ministry of commerce trade and industry as well as relevant stakeholders to
improve access to credit facilities to the SMES in PNG.
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