The Solomon Islands Chambers of Commerce and Industry has teamed up with the Government and the Central Bank of Solomon Islands to come up with a scheme to help small businesses obtain loans from banks and credit providers. The scheme is targeted at small businesses that are unable to obtain loans due to not having assets to secure the loan. Under the scheme, CBSI will guarantee the loan. In the event the small business defaults on the loan, the banks and credit providers can claim their money from CBSI. (Source: Solomon Star)
There is certainly demand among small businesses to access credit to grow their business and this scheme responds to that demand. However, for every business venture that succeeds, many more are bound to fail. The commercial banks may have good reason for being risk adverse. It will be interesting to see how this scheme plays out and whether the Government has a contingency plan to handle the potential debt liability.
#allyourdebtsarebelongtous
Solomon Business Blog 