Treasury to guarantee only part of SME loans

National Treasury building. FILE PHOTO | NMG

The Treasury will not fully guarantee loans given to small and medium enterprises (SMEs) under the State-backed Credit Guarantee Scheme if a proposed law sails through in Parliament.

The Public Finance Management (Amendment) Bill, 2020 before the National Assembly says the Treasury will only take a portion of the losses in case an SME defaults on payment of the loans.

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