Macau banks increase loans for SMEs

Banks offer more attractive financing options.

Macau’s newly approved credit to small and medium enterprises amounted to US$1.6 billion from January to June, up by 3.6% from the second half of last year, said the Monetary Authority of Macau.

The data show a nearly 90% rise from the first half of last year, when SMEs were only granted loans worth US$825 million.

The collateral ratio, the upper amount of credit allowed versus tangible assets pledged, reached the highest since the authority began collecting data in 2008 at 75.2% in H1.

SMEs, however, only used 57% of the loans approved, a slight decline of 2.3% from a year earlier, said MAM.

The Federal General Commercial Association of Macau Small and Medium Enterprises said it has become easier for SMEs to get loans from banks or the government in the last two or three years.

“Both the government and the banks have been more aware of the difficult conditions that SMEs face here and are able to grant more support,” Fong Kin Fu, president of the association, told Business Daily.

MAM said that banks lent more to firms in retail and information technology, up by 24.3% and 21.2%, respectively, from a year earlier.