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Non- Performing Loans Of SMEs On The High Side, Says CGC Chairman
KUALA LUMPUR, June 1 (Bernama) -- Non-performing loans (NPLs) of small-and-medium enterprises (SMEs) is on the high side, says Credit Guarantee CorpMalaysia Bhd (CGC) Chairman Datuk Zamani Abdul Ghani.
He said while SME outreach was important the quality ofloans should also be given due attention.
"We hope this is checked at the source of loangeneration to ensure NPLs are kept at a more manageable level," he said atthe CGC Top SMI Supporter Award presentation ceremony here Tuesday.
However, he did not reveal the level of NPLs among SMEs.
Despite the tight financial environment, SMEs continuedto enjoy access to financing with loans outstanding accounting for about 40 percent of total business loans of the banking and financial institutions systemas at end-2009.
"We stepped up efforts and reached out to more than14,000 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 fiverecipients, Malayan Banking Bhd, Public Bank Bhd, RHB Bank Bhd, CIMB Bank Bhdand Bank Islam, contributedsignificantly to CGC's performance.
"Participation by financial institutions in 2009 wasencouraging," he said, adding that the five recipients jointly accountedfor 51 per cent of total business financing guaranteed in 2009.
Maybank was also coveted the "Best FinancialPartner" award for contributing the most towards CGC's quality assets.
On another note, Zamani also called for greaterparticipation by financial institutions in the RM1.5 billion Green TechnologyFinancing Scheme (GTFS) which was launched in January.-- BERNAMA
