THE HAGUE, Wednesday - Small and medium-sized (MKB) companies who avail of the government's credit guarantee scheme can take longer to pay off the loan. Economic Affairs Minister Maria van der Hoeven is extending the term by 24 months.

Currently, a maximum term of two years applies. This will be doubled, the Christian democratic (CDA) minister has told the Lower House. While it was certain sectors and the banks themselves that had pushed for the extension, the minister is introducing it for all sectors.

At the end of last year, shortly after the outbreak of the financial crisis, Van der Hoeven had widened the guarantee scheme (BMKB) for MKB companies. To date, the scheme has been availed of to borrow 222 million euros, on which the state is guarantor.

A survey shows that 54 percent of companies applying for credit between December last year and May this year also actually received the money. In the previous period, this was still 81 percent.

"Remarkably", bigger companies have more chance of borrowing than smaller ones. "It appears to be difficult for banks to assess whether a small company (less than 10 employees) is credit-worthy," stated the minister.