Minister of Finance Iipumbu Shiimi has announced the commencement of the Credit Guarantee Scheme for SMEs which will provide collateral cover of 60% for qualifying SMEs applying for finance from participating commercial finance institutions. The rationale behind the Credit Guarantee Scheme, The Development Bank of Namibia explained in a press release, is that there are SMEs with excellent prospects for success and viable business plans, but lacking the necessary collateral to obtain loans. By insuring credit granted to qualifying SMEs, the Scheme, which is currently only available from First National Bank of Namibia, will substantially reduce the collateral requirement for qualifying SMEs.