CGC to launch new scheme by August

  • Business
  • Saturday, 27 May 2006

PETALING JAYA: Credit Guarantee Corp Malaysia Bhd (CGC) plans to launch its new guarantee scheme in mid-July or early August to capture a larger customer base in the financial institutions sector, said chief executive officer Datuk Wan Azhar Wan Ahmad. 

He said under the unconditional guarantee scheme, banks submitting their account claims to the CGC would no longer be subject to deadlines. 

“Banks will no longer be required to submit formal notification of the status of their accounts,” Wan Azhar told reporters after the presentation of awards to the winners of the 11th Top Small-and-Medium Sized Industry (SMI) Supporters Award yesterday. 

He said the corporation had to date guaranteed RM1bil worth of loans and was confident that the new scheme would help boost its loans portfolio to RM4bil this year. 

At CGC's AGM earlier, shareholders passed a proposal to allow non-shareholders to participate in CGC's schemes. 

“The traditional scheme had been limited to shareholders like commercial banks, finance companies and central banks.  

“The liberalisation of the scheme will help grow the number of participants, including Islamic institutions, SME Bank, Bank Pertanian Malaysia and Malaysian Industrial Development Finance Bhd,” said Wan Azhar. 

Bumiputra-Commerce Bank Bhd Abu Bakar Buyong, deputy chairman of Malayan Banking Bhd (Maybank) Agil Mohd Natt, general manager, credit control and Islamic Banking of Public Bank Bhd Ismail Ibrahim, group chief executive officer and executive director of EON Bank Bhd Albert Lau Yiong at the 11th Top SMI Supporters awards presentation ceremony in Petaling Jaya on Friday.

Meanwhile, repeat winners Malayan Banking Bhd (Maybank) and Bumiputra-Commerce Bank Bhd won the Top SMI Supporters award for the 11th year. Public Bank Bhd won for the third time while EON Bank Bhd was a first-time winner. 

For the year ended Dec 31, 2005, the corporation guaranteed 8,567 loans valued at RM3.3bil against 8,452 loans valued at RM3bil a year earlier. 

CGC's income from guarantee fees grew 11.7% to RM73.4mil during the year, against RM65.7mil recorded a year earlier. 

As at the end of April, the corporation guaranteed a total of 525 loans valued at RM364mil under its Islamic Banking Guarantee Scheme and Direct Access Guarantee Scheme-Islamic. 

Wan Azhar said that CGC had embarked on strategic alliances with foreign SME institutions to help local SMEs to tap funds from the overseas capital market. 

“The partnerships with KfW Bankengruppe, Aureos Capital Ltd and Korea Enterprise Data are expected to be finalised in the current year,'' he added.  

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