Macau SMEs borrow more

New Small and Medium Enterprises or SME lending approved by Macau banks increased in the first half of 2010. In the first half of 2010, new SME credit limit approved by Macau banks totalled MOP10.3 billion (US$1.29 billion), 16.7 percent up on the second half of 2009 or 67.7 percent up on the same period last year. As at end-June 2010, the outstanding value of total SME loans reached MOP22.5 billion, which represented a growth of 8.7 percent from end-December 2009 or 14.9 percent from a year earlier. When compared with end-December 2009, SME loans to sectors of manufacturing increased by a rate of 23.4 percent. The increase in the warehouse and communications sector was 5.6 percent, while for restaurants, hotels and similar activities, the rise was 1.2 percent. Drops were registered in construction and public works and wholesale and retail trade. The delinquency ratio, a ratio of delinquent loans outstanding balance to total SME loans outstanding, dropped 0.32 percentage points from end-December 2009 or 0.06 percentage points from a year earlier to 2.15 percent.