Banks to roll out loans for SME owners: Duma

By DALE LUMA
IT is incumbent on the two banks partnering with the government on the K200 million credit scheme to ensure people in rural areas and those in the informal sector can access the funding, Commerce and Industry Minister William Duma says.
Responding to questions raised in Parliament on the SME funding by Nuku MP Joe Sungi and Moresby North East MP John Kaupa, Duma said there were clauses in agreements between the Government and the banks to go out of their way to assist people.
He said while Bank South Pacific and National Development Bank did not have branches in most districts to roll out loans easily to small and medium enterprises (SMEs) they would require the banks to set aside funds for those areas as well as improving accessibility.
“Under the capital infrastructure programme for NDB, we are looking at building branches and sub-branches where there are no banking facilities,” he said.
“We have MOUs with BSP and NDB where in some of the clauses in the agreement, we require the banks to go out of their way if necessary to help the people.
“For those already existing customers to NDB or BSP, it will be easier.
“If they want to have access to those funds, they will have to apply the normal way.
“They will have to have GST, tax returns and all those to meet the requirements.”
Duma said the banks would be required to have separate teams at their branches to deal with the SME loans and in particular assist rural SME operators.
He said that it is incumbent on the district and provincial administrations to coordinate with the banks so that those that wanted to have access to the credit scheme were not left out. He said government would run a campaign on the credit facility for the loan scheme.