Macau | Credit for SMEs rebounded in second half of 2017

Macau (MNA) – Approved new credit to small and medium-sized enterprises (SME) grew to MOP12.8 billion (US$1.59 billion) in the second half of 2017, up 1.6 per cent compared to the first half of the year, data by the Monetary Authority of Macao (AMCM) revealed on Monday. However the figure shrank 5.8 per cent compared to the second half of 2016.

The collateralised ratio in the period was 73.8 per cent, 12.4 percentage points less compared to the first half of 2017.

The outstanding balance of SME loans reached MOP77.5 in 2017 H2, up 6.5 per cent when compared to the first half of last year and 11 per cent from 2016.

SME loans to ‘manufacturing industries’, ‘restaurants, hotels and similar activities’ and ‘construction and public works’ increased 29.4 per cent, 18.2 per cent and 16.6 per cent, respectively. ‘Transport, warehouse and communications,’ decreased 12.8 per cent.

‘Construction and public works’ leads the outstanding loans pie chart in the second half of 2017 with a 34.5 per cent share, followed by the ‘wholesale and retail trade’ (18.5 per cent) and ‘restaurants, hotels and similar activities’ (3.7 per cent).

The outstanding balance of delinquent SME loans rose 1.6 per cent from six months ago, dipping 9.7 per cent from the preceding year to MOP522.2 million, according to AMCM.

The delinquency ratio decreased 0.03 percentage points from the first half of 2017 and 0.15 percentage points annually to 0.67 per cent.