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NFA, RDB set up fishing
loan scheme
THE National Fisheries Authority (NFA) and
the Rural Development Bank (RDB) have signed a deal for a new fisheries
credit facility that will help fishing groups and businesses to increase
their earning potential.
The agreement was signed by Fisheries Minister Ben Semri, NFA and RDB
executives at Airways Hotel last Friday.
Prime Minister Sir Michael Somare officially launched the facility and
witnessed the signing of the agreement.
NFA will hand over K5 million to RDB to set up the facility which will
be available to fishing communities and enterprises throughout PNG.
“The remaining K10 million out of the K15 million that has been
committed for this project will be released on the condition that the
credit facility is well managed,” Sir Michael said.
There will be three credit lines in this facility.
These are micro-credit line, small enterprise credit line and business
credit line – targeting all involved in the fisheries sector from
village-based fishing groups to small-scale fishing enterprise to
commercial fisheries operators.
Sir Michael said fisheries were an important economic sector for the
Government’s drive to deliver economic growth and sustainable
development.
“This is a generous facility that no commercial bank will offer to any
commercial village fishermen and is in effect a new year present to
fishermen in maritime villages,” chairman of RDB William Lamur said.
Under the micro credit line, loans from K1,000 to K5,000 will be
provided to ordinary village fishermen to assist them with their fishing
business.
A total K2 million out of the K5 million will be provided to
village-based fishermen.
Under the small-enterprise credit line category, loans will be made
available to existing commercial fishermen to improve or expand their
existing fishing business.
Loans from K5,000- K50,000 will be provided to such entrepreneurs or
companies. K1.5 million out of the K5 million will go towards the small
enterprise credit line.
The business credit line targets established private fishing companies
or individual entrepreneurs who need funding to expand their fishing
business. K1.5 million out of the K5 million has been provided for the
business credit line. Borrowers under this category can apply for loans
from K50,000 - K1 million.
Under the facility, the interest rate for all credit lines will be fixed
at 10%. RDB will have the sole and final decision on who obtains loans
under the facility.
 
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