CBN Receives 19 Applications For SMEs Fund

The Central Bank of Nigeria (CBN), last Thursday said that only 19 applications were received for the N200 billion Small and Medium Enterprise Credit Guarantee Scheme (SMECGS) as at March 2012.

Mr Paul Eluhaiwe, the Director, CBN Development Finance Department, said this at the on-going seminar for Finance Correspondents and Business Editors in Akure, Ondo State.

Reports say that the SMECGS fund is among the post-2008 intervention fund established by the CBN to support the real sector of the economy.

“19 applications valued at N960 million have so far been guaranteed under the scheme as at March 2012,’’ he said.

Represented by Mr Salihu Ahmed, Assistant Director, Development Finance Department, Eluhaiwe said that high interest rate had undermined the scheme, adding that there was the need to introduce draw ‘back programme’ to enhance it.

He said the apex bank had continued to ensure effective disbursement of the other intervention funds to the various sector.

For instance, he said the SME-RRF fund had over the years, generated 16,422 jobs and used to resuscitate nine moribund companies.

The 3-day conference ended last Friday, July 20.