NDB-Lae ups lending accounts by over 100%

By JASON SOM KAUT
THE National Development Bank (NDB) branch in Lae has increased its lending accounts by more than 100%.
Branch manager John Wawe said it was “very encouraging that more people are getting loans for commercial projects like coffee, cocoa and other small livelihood activities”.
“NDB Lae branch was doing extremely well with more village people coming to the bank and seeking loans,” Mr Wawe said.
Two of the branch’s biggest accounts this year involved the acquisition of hauling trucks by landowner company Ahi Holdings and the launch of a pilot micro-credit project involving six Ahi villages.
Ahi Holdings had been turned away on several occasions by other banks until NDB came to its rescue.
Mr Wawe said the pilot micro-credit scheme would be rolled out to other villages and centres if proved successful.
The lending scheme gave villagers access to small loans upon affiliation with the community organisation.
The six pilot villages involved in the project were currently undergoing personal viability training course and the participants are expected to graduate early next month.
Another impact project undertaken by the bank was the Ramu oil palm scheme where the bank provided small loans to landowners to help them develop smallholder plots that would supply oil palm fruits to Ramu palm oil mill.
Prime Minister Sir Michael Somare was expected to commission the mill within the next few weeks.
Meanwhile, NDB base loan assets had grown to over K3 million, Mr Wawe said.
However, he was skeptical of the district offices in Morobe whom he said were not doing enough to support their areas in encouraging the people to engage in livelihood projects.
He also stressed that the high cost of commuting from villages to Lae had been one problem that prevented more people from going to the bank for loans.
He revealed the bank had also been approached by a multi-national corporation (MNC) that was interested in helping a local company.
Without naming the MNC, Mr Wawe said its move to partner with the local firm, which will be partly-funded by NDB would help the bank gain respect in the market and deliver more business opportunities to local entrepreneurs.