CGC To Approve RM1.3 Billion Guaranteed Financing For Green Tech By 2015

Credit Guarantee Corp Malaysia Bhd (CGC) is expected to approve some RM1.3 billion worth of financing with guarantee under the Green Technology Financing scheme by 2015.

Managing Director Datuk Wan Azhar Wan Ahmad said the approval was expected for 130 account holders compared with 90 accounts worth RM1.4 billion approved since the scheme was introduced in 2010.

The scheme set up in 2010 was for three-year term with a total allocation of RM1.5 billion from the government.

Wan Azhar said, however, there might be approvals by financial institutions that do not require guarantee.

“With the additional budget of RM2 billion from the government, we still have a balance of over RM2 billion.

“It is not moving as fast as we expected earlier (the financing). However, since the scheme has been extended for another two years until 2015, we will find ways to achieve (the target),” he told Bernama.

CGC, together with the Malaysian Green Technology Corporation, are the implementation agencies appointed by the government for the Green Technology Financing Scheme.

Prime Minister Datuk Seri Najib Tun Razak, when tabling the 2010 Budget, had established a RM1.5 billion fund as part of efforts to promote green technology.

The fund is to provide soft loans to companies that supply and utilise green technology and the maximum financing allocation for suppliers is RM50 million and RM10 million for consumer companies.

Under the scheme, the government bears two per cent of the total interest rate for the financing and provides a guarantee of 60 per cent on the financing amount with the remaining 40 per cent is by banking institutions.