SINCE the launch of the small and micro enterprise credit guarantee facility, the Reserve Bank of Fiji has registered 93 loans worth $6million, Reserve Bank of Fiji governor, Barry Whiteside said.
Mr Whiteside said this figure was for the months of January to May adding that this was a good progress.
The credit guarantee facility of $3m was given by the government to boost financing SMEs and sharing the risks with financial institutions.
The guarantee is for loans that have an interest rate below 10 per cent. Earlier, this week Westpac launched its Equipment Finance loan designed for SMEs.
Westpac head of corporate and business banking, Cameron Penfold said the product was in line with RBF initiatives.
Mr Penfold said there had been a marked increase in activity and enquiry in their SME segment of the business.
He added that there had been an increase in loan approvals.
Mr Penfold said with the reduction in tax rates this year as well as the recent payout to Fiji National Provident Fund pensioners had resulted in extra cash in the financial system. At least 65 per cent of Westpac's managers are in the SME segment, which Mr Penfold said showed the importance they placed on the SME segment.
He added that these managers were located in most branches across the country so that they could be closer to their customers.
Finance Ministry permanent secretary Filimone Waqabaca earlier said SMEs were the bedrock of an economy.
This was because during a crisis, while bigger companies would "pack and go", it is the SMEs that hold the economy together.
Mr Waqabaca said SMEs should be supported as they would create employment, which would lead to economic growth.
Meanwhile, Mr Whiteside said the RBF was closely monitoring the developments within the Eurozone carefully.
"I don't know whether we should say it won't affect us, if something happens to China, it would affect Australia and it could also affect us," he said.