CGC Offers Assistance To Banco Central De Timor-Leste

KUALA LUMPUR, May 29 (Bernama) -- Credit Guarantee Corporation Malaysia Bhd (CGC) is collaborating with Banco Central de Timor-Leste (BCTL) for the development of credit guarantee and financing schemes for Small and Medium Enterprises (SMEs) in Timor-Leste. Towards this end, both parties Friday signed a memorandum of understanding (MoU), said CGC said in a statement. CGC will also assist with the establishment of a credit guarantee institution or unit to manage the guarantee scheme for BCTL. Malaysia's Central Bank (BNM) Deputy Governor Muhammad Ibrahim said CGC had the necessary experience and expertise to assist BCTLeste, to develop financing schemes for SMEs in the agricultural sector. Through the alliance, CGC and BCTL will participate and collaborate to organise research, seminars, trainings, and study visits to promote the enhancement of knowledge and skills deemed vital for the management of the credit guarantee scheme in Timor-Leste. "The two parties will work together in a way that we hope will determine the future structure of finance for SMEs in Timor-Leste," the Governor of BCTL, Abraao de Vasconselos, meanwhile said. "BNM has also supported the Central Bank of Timor-Leste from its inception in a wide range of activities. In particular, BNM provided BCTL with valuable support during the development of our Financial Sector Master Plan through review and advice," he added. CGC has been in the forefront of SME development not only in Malaysia, but also on international front in assisting countries such as Papua New Guinea and Mongolia. In 2013, CGC signed MoUs with Papua New Guinea and Mongolia to establish credit guarantee institutions to further enhance SME financing in their respective countries. -- BERNAMA