According to statistics released today by the Monetary Authority of Macao, new SME lending approved by Macao banks increased in the first half of 2010. Concurrently, the utilisation of SME credit in proportion to the credit limit approved by banks continued to decline.

New Lending Approved

In the first half of 2010, new SME credit limit approved by Macao banks totalled MOP10.3 billion, 16.7% up on the second half of 2009 or 67.7% up on the same period last year. The collateralised ratio, which indicates the proportion of credit limit with tangible assets pledged, was 36.3%, down significantly by 28.1 percentage points when compared with the second half of 2009 or down by 3.1 percentage points when compared with the same period of the preceding year.

Credit Utilisation

As at end-June 2010, the outstanding value of total SME loans reached MOP22.5 billion, which represented a growth of 8.7% from end-December 2009 or 14.9% from a year earlier. When compared with end-December 2009, SME loans to sectors of “manufacturing”, “transport, warehouse and communications” and “restaurants, hotels and similar activities” increased at respective rates of 23.4%, 5.6% and 1.2%, whereas those to “construction and public works” and “wholesale and retail trade” dropped 6.5% and 3.4% respectively. These sectors accounted for 73.0% of the total SME loans outstanding.

The utilisation rate, defined as the proportion of outstanding credit balance to the credit limit granted, declined 7.3 percentage points from six months ago to 53.3% .

Delinquent Loans

At the end of June 2010, the outstanding balance of delinquent SME loans decreased 5.2% from six months ago to MOP483.4 million. Compared to a year ago, the balance grew by 11.6%. 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%.