Parliament has approved a Government Financial Guarantee for the Productive Sector Banking Facility valued at more than VT927 million.

Written Motion Number 2 of 2026 was presented by Deputy Prime Minister and Minister of Finance Johnny Koanapo and seconded by Minister of Trade Samson Samsen.

The scheme highlights strong Government support for the productive sector through a financial guarantee aimed at helping businesses grow and improving access to finance.

Under the scheme, Government will work together with commercial banks to make loans more accessible to qualified businesses and individuals who want to start or expand businesses at a low interest rate of 5 percent.

The Ministry of Finance will work closely with banks to establish clear eligibility criteria for businesses applying under the scheme.

During discussions in Parliament, leaders said the facility will focus on productive sectors including agriculture, MSMEs, tourism and manufacturing, while helping businesses facing cash flow difficulties and supporting new entrepreneurs.

“Many people complain they cannot afford tools to work. Government is making this money available. We are building roads to support small kava businesses, virgin oil production and tourism activities, but there is no access to finance. Liquidity is high and interest rates are high, so Government is providing this support to stimulate economic activity for our people,” one speaker told Parliament.

Minister of Trade Samson Samsen said the facility is expected to have a major impact on tourism, commercial agriculture, manufacturing and value-adding industries.

One special feature of the scheme is that Government will cover the interest payments for the first 12 months of qualified loans to help businesses during their start-up phase.

The Opposition also supported the motion, saying the initiative would help strengthen the economy if implemented properly.

“The Opposition supports anything that helps stimulate and grow the economy. Our economy depends heavily on the public sector, so it is good to strengthen the private sector as well to create a more robust economy,” Opposition members stated.

Government also stressed that the facility will operate through the banking system to ensure continuity and avoid political interference.

The Written Motion was passed in Parliament with 40 votes in favour.