[Source: Business Daily, by John Mutua]
The Treasury will not fully guarantee loans given to small and medium enterprises (SMEs) under the State-backed Credit Guarantee Scheme if a proposed law sails through in Parliament.
The Public Finance Management (Amendment) Bill, 2020 before the National Assembly says the Treasury will only take a portion of the losses in case an SME defaults on payment of the loans.
This means that a small business must provide collateral for the loans that include assets like machinery and other property.
The Bill…
