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NDB gets K100million loan fund
By BIBIAN BARRENG
THE lending programme through the
National Development Bank has been invigorated to help small
entrepreneurs, something commercial banks will never do.
This was the gist of a remark by Prime Minister Sir Michael Somare
at the launch of the National Development Bank, the new name of
the former Rural Development Bank (RDB) in Madang last Friday.
Alongside the name launching, the Government had pledged K100
million to beef up the bank’s lending capital.
Sir Michael said under the new set-up, NDB had widened its scope
to effectively help all sectors obtain business capital. Under RDB,
bank lending was focused only on agricultural activities.
NDB is hoped to help small entrepreneurs put up livelihood
projects and improve the lot of many Papua New Guineans.
In his remark, Sir Michael said that NDB had actually replaced the
defunct PNG Banking Corp (PNGBC) and was now a bank owned by over
five million Papua New Guineans.
He recalled that his Government had worked to lower interest rates
as a response to the Agriculture minister’s call to bring it down
to at least 1% or 2% instead of increasing it.
NDB will now be operating under the Department of Treasury,
according to Agriculture and Livestock Minister Sasa Zibe.
Stressing the significance of agriculture, Mr Zibe noted that the
sector contributed K1.4billion to the national economy.
But he said this can further increase to K2 billion if much effort
was put into the sector.
Mr Zibe said DAL will donate K45 million to the bank, of which K40
million will be apportioned to the four regions of the country to
fund each respective agricultural programmes.
The other K4million will be set aside for women engaged in
agriculture and the remaining K1million will go to NDB’s
administrative operations.
 
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