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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.