MICRO, small and medium enterprises in the country have been given a boost through governments safety net the Credit Guarantee Scheme.
Finance Ministry permanent secretary Filimoni Waqabaca said under the scheme, government had set aside $3 million to aid enterprises that faced difficulties in meeting microfinance repayment obligations.
"We are encouraging lending to finance through the Credit Guarantee Scheme of $3 million", he said.
"What this means is that we are asking the banks to lend to MSMEs, in the event the micro entrepreneur fails to pay what is owed then government will step in and pay 50 per cent of the debt with a ceiling of $50,000 per company," he told the Fiji Institute of Accountants Congress 2012 which ended in Sheraton Fiji Resort in Nadi yesterday.
Mr Waqabaca said microfinance schemes had the potential to empower small business owners to develop and expand their business and with the introduction of government's safety net, financial institutions should be better placed to take on new and varied MSME ventures.