New SME credit expands

The Monetary Authority of Macau released the credit statistics of small and medium-sized enterprises (SME) last Friday. According to the data, the amount of new SME credit approved increased in the first half of 2017 compared to a year ago. The outstanding balance of SME loans recorded annual growth, while the share of SME loans granted to major industries remained stable.

Of the new lending that was approved in the first half of 2017, new SME credit limit approved by Macau banks totaled MOP12.6 billion, down by 7.3 percent from the second half of 2016, but up 26.8 percent from the same period last year. The collateralized ratio, which indicates the proportion of credit limit with tangible assets pledged, stood at 86.3 percent, up by 2.4 percent compared to the last surveyand 4.7 percent when compared with the same period of 2016.

At the end of June, the outstanding value of total SME loans increased by 4.3 percent from end-December last year, or by 7.4 percent from a year earlier to MOP72.7 billion.

On an annual basis, SME loans granted to “restaurants, hotels and similar activities” and “construction and public works” increased at rates of 28.4 percent and 14.6 percent, respectively. Loans granted for “transport, warehouse and communications” and “manufacturing industries” dropped by 14.4 percent and 11 percent, respectively.

As for delinquent SME loans, the outstanding balance declined 11.1 percent to MOP514 million by the end of June compared to six months ago, an increase from the balance of MOP306.4 million a year ago.