Tuesday, May 3, 2011

'Banks should explain greentech loan inadequacy'

Local banks must explain to the government the inadequacy of loan approvals for green technology projects, says Deputy

Finance Minister Datuk Donald Lim Siang Chai.

He said the government established a RM1.5 billion fund last year under the Green Technology Financing Scheme to encourage companies to invest in the innovative green technology sector.

"So far, we find that only RM204 million or below 20 per cent has been approved by the banks, which is quite far from our target," he told reporters after launching the Malaysian Debt Ventures Bhd Green Technology Financing programme here today.

Last year, the government invited local banks for a discourse on the lack of loan approvals, but the bankers did not state any reasons or problems they faced in disbursing loans for green technology projects, he said.

"This year, we will do some discussions with them again. We hope the allocated RM1.5 billion will be disbursed by the third quarter of this year.

"If the banks cannot do it, then they have to tell us why," he said.

Of the 109 loan applications received, 83 were awarded the "Green Certificate", making them eligible for financing, while 13 others have been approved for financing, he said.

Lim said the government had taken the responsibility to absorb two per cent of the loan interest in addition to providing a 60 per cent guarantee on the financing amount, with the remaining 40 per cent borne by the participating banks. -- Bernama

Read more: 'Banks should explain greentech loan inadequacy' http://www.btimes.com.my/Current_News/BTIMES/articles/20110503190114/Article/index_html#ixzz1LHscC01O

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