General
Press Releases
Press
Release January
17, 2005
Reduction
in Premium Rates for Service Enterprises
This
is to advise that with effect from January 1, 2005, service
enterprises utilizing the Credit Guarantee Scheme for
Small and Medium-sized Enterprises and/or the Export Credit
Insurance & Guarantee Scheme are entitled to a reduction in
the rate of premium charged for insurance and/or guarantee cover
as follows:
Credit
Guarantee Scheme for Small and Medium-sized
Enterprises
A
66⅔% reduction in the rate of premium charged for loans
guaranteed.
Export
Finance Guarantees
A
50% reduction in the rate of premium charged for export loans
guaranteed.
Export
Credit Insurance
A
50% reduction in the rate of premium charged for services
insured.
These
reductions apply to the service enterprises only.
Service enterprises currently covered under any of the
abovementioned schemes should contact the relevant lending
institutions or the Central Bank to ascertain the rate of
premium applicable to them.
New
applicants for cover will be entitled to the reduced rates of
premium in respect of any insurance or guarantee cover obtained.
Service
enterprises are those businesses whose principal activities are
the sale/delivery of services to local and/or foreign buyers as
opposed to the sale and/or delivery of tangible goods.
The
reduction in premium rates is designed to encourage the services
sector to venture into new service activities, especially for
the export market, which are capable of generating additional
employment and foreign exchange. This support measure, at
minimum cost to the enterprise, should engender confidence and a
stronger competitive spirit among service providers.
Wherever
practicable commercial banks and other financial institutions
with access to the Central Bank’s special financing schemes
are encouraged to facilitate service providers who need
financial assistance and/or security for the execution of their
service contracts. This should provide an opportunity for them
to grow and expand and ultimately to compete in the regional
and/or global markets.
January
17, 2005
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