THE IMPLEMENTATION OF NEW ENTREPRENEURS FUND 2 (NEF 2)
PRESS RELEASE BY
WAN AZHAR WAN AHMAD
CHIEF EXECUTIVE / MANAGING DIRECTOR
ON THE IMPLEMENTATION OF
NEW ENTREPRENEURS FUND 2 (NEF 2)
(16th July 2001)
1. We are pleased to announce that effective from July 16, 2001, Bank Negara Malaysia has appointed Credit Guarantee Corporation Malaysia Berhad (CGC) as administrator of the New Entrepreneurs Fund (NEF 2) with an allocation of RM250 million.
2. The NEF 2 will be channeled to eligible Small and Medium Entreprises (SMEs) through the following participating financial institutions :-
a) All commercial banks
b) All finance companies
c) 3 development financial institutions;
Bank Industri & Teknologi Malaysia Berhad
Bank Pembangunan & Infrastruktur Malaysia Berhad
Malaysia Industrial Development Finance Berhad
Bumiputera entrepreneurs eligible for NEF 2 must have the following criteria: –
a) Companies with shareholders? fund of not exceeding RM10.0 million.
b) Must be wholly-owned Bumiputera enterprises/companies/ institutions registered under the Companies Act 1965, the Co-operative Societies Act 1996 or Bumiputera citizens residing in Malaysia and Bumiputera entrepreneurs registered under Registrar of Business or any other authoritive body;
or
Bumiputera SMEs under the vendor development programmes of the Ministry of Entrepreneur Development or Ministry of Finance with at least 70% Bumiputera equity and management control.
3. The maximum loan limit per borrower will be RM5 million and the purpose of the loan will be for expansion in productive capacity, working capital or both. The fund covers all types of credit facilities with maximum lending rate of 5.5% per annum, whilst the maximum loan tenure will be for 8 years.
4. The appointment of CGC as the administrator of NEF 2 is consistent with the objective of making CGC a ?one stop center? for SMI funds. At present, CGC is already managing the Fund For Small and Medium Industry 2 (FSMI 2) totaling RM200 million.
5. To date, CGC has guaranteed 760 loans valued at RM300 million under NEF and has availed to SMIs, 353 loans valued at RM177.1 million under FSMI 2.
Credit Guarantee Corporation Malaysia Berhad
July 16, 2001
20-Feb-2004 14:02:59 PM