21
Aug
Staff Writer Finance Minister Iipumbu Shiimi has announced the commencement of the Credit Guarantee Scheme for SMEs. The scheme will provide collateral cover of 60 percent for qualifying SMEs applying for finance from participating commercial finance institutions. “The rationale behind the Credit Guarantee Scheme is that there are SMEs with excellent prospects for success and viable business plans, but lacking the necessary collateral to obtain loans. Commercial finance institutions require the security of collateral to ensure that their capital is preserved in the event of an SME being unable to repay their loans. By insuring credit granted to qualifying SMEs,…