PETALING JAYA, May 23 (Bernama) -- Credit Guarantee Corporation Malaysia Bhd (CGC) will continue to expedite loans for small and medium enterprises (SMEs), targeting to provide RM3 billion in credit guarantee this year.
As at April, it had guaranteed 2,000 accounts worth RM600 million, said Managing Director and Chief Executive Officer Datuk Wan Azhar Wan Ahmad Monday.
Last year, he said, CGC approved guarantees for 7,770 accounts totalling RM2.5 billion to SMEs in all sectors compared with 14,073 accounts valued at RM3.1 billion in 2009.
He said CGC would continue to play a fundamental role to enhance SMEs' access to financing by offering specific guarantee products and services that meet the needs of SMEs.
"We have drawn up plans to accord greater focus on guarantees as our core business, and engage in more risk-sharing arrangements with financial institutions, and will step up marketing and promotion initiatives to drive products and services," he told reporters after the award presentation of CGC's 16th Top SMI Supporter Award here.
As at May 10, he said, more than 1,100 borrowers had benefited from CGC's guarantees offered through the portfolio basis valued at RM364 million.
To date, CGC has been instrumental in the establishment of more than 410,000 SMEs, guaranteeing close to RM48 billion.
Established in 1972, CGC's core business focus is to assist SMEs, especially those without or with inadequate collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities.
For the financial year ended Dec 31, 2010, CGC recorded a net profit of RM15.6 million as a result of lower provisions for non-performing loans during the year under review.
However, the corporation's income declined to RM256.0 million from RM289.6 million in 2009.
Wan Azhar said CGC's commendable performance last year was due to its aggressive approach in developing and promoting new and innovative products to ensure faster turnaround time and speedier disbursement of loans.
Last year, the corporation launched two new products -- SME Express and SME Quick Financing -- to ensure that borrowers enjoy a seven-day turnaround time and an 80 per cent guarantee cover via the enhancer scheme.
-- BERNAMA
