Government guarantee schemes to take off tomorrow

  • Business
  • Wednesday, 15 Apr 2009

PUTRAJAYA: Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), which is wholly owned by Minister of Finance Inc, hopes loan facilities from the Government’s two special guarantee schemes will help more Malaysian companies, especially small and medium enterprises, survive the global economic slowdown.

The two schemes, worth RM10bil, are part of the second economic stimulus package announced by the Government recently.

SJPP director Fazlur Rahman Ebrahim said the two schemes were a boost for financial institutions to continue providing financing facilities to the companies.

“The schemes will commence on April 16 (tomorrow) and will involve 43 financial institutions.

“So far, the participating financial institutions have received applications for about RM600mil facilities from these special schemes,” he said at the signing for the collaboration with the 43 financial institutions yesterday.

The two schemes are Working Capital Guarantee Scheme (WCGS) and Industry Restructuring Financing Guarantee Scheme (IRFGS).

“Both schemes will get an allocation of RM5bil each and applications are open from March 16 to December 2010 or until all the money is fully disbursed. However, the schemes are only for companies with a majority of local shareholders,” Fazlur said.

WCGS is targeted to assist Malaysian companies with shareholders’ equity of less than RM20mil to carry on operating. The Government will guarantee 80% of the financing. WCGS’ financial facilities are RM50,000 to RM10mil per company.

IRFGS was set up to promote investments to increase productivity, high value-added activities such as research and development, and use of green technology.

As with WCGS, the Government will guarantee 80% of the loans to companies with shareholders’ equity of less than RM20mil. For companies that have more than RM20mil in shareholders’ equity, the Government will guarantee 50% of the financing amount.

The amount of financing under this scheme is RM50,000 to RM50mil per company. For latest Bursa Malaysia indices, charts and other information click here

For latest Bursa Malaysia indices, charts and other information click here

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