The Small Industry Finance Corp, a state-agency set up specifically to help small and medium-sized enterprises has announced that following a loss of 47m bath in 2000, SIFC has recorded a profit in 2001.
The 1997 economic crisis has led many banks to clamp down on lending procedures in an effort to restrain the problems of non-performing loans. Yet the banks, with a risk-averse attitude, have led to many firms complaining of a cash crunch.
The government has sought to address the problem by supporting the establishment of new venture capital funds and encouraging state banks and agencies to increase lending for small and medium-sized companies.
The SIFC, formally established in 1992, has been tipped to be upgraded into a SME Bank under legislation now under review in parliament.
