Risk Share Facility
- Risk sharing facilitys is governed by a Risk Sharing Framework Agreement between the PFIs & International Finance Corporation, a subsidiary of the world Bank, on behalf of Gov-PNG and the Risk Sharing Facility Agreement btw BSP/IFC
- The RSF Agreement sets out a 50-50 risk sharing framework where the IFC can cover 50% of a default on a loan by a SME up to K150million of the total portfolio exposure of K300million.
- The project offers confidence to the PFIs to lend more funds to SMEs which used to be deemed as high risk lending, thus limited access to loans by SMEs.
- Bank South Pacific (BSP) is the first participating FI and assumes 50 per cent exposure to a default risk on the SME loans.
Performance Output: SME lending by Sector
- Under the Risk Share Facility, a total funding of K491 million were committed and disbursed by BSP to 1800plus SMEs in different sectors as shown in the Pie-chart
SME Lending by Region
- Distribution of lending out of the total lending portfolio of about K490m as at 31 October 2017 by region.