Banks yet to receive SME funds

The National Business

TWO banks which signed financing agreements with the Government recently have yet to receive funding to assist small-medium enterprises.
Bank of South Pacific (BSP) and National Development Bank (NDB) confirmed that they are yet to receive the K100million and K80million allocated to the banks by the Government.
BSP group chief executive officer Robin Fleming said: “The funding has not yet been received from the Government. We are awaiting an update from the DCI (Department of Commerce and Industry).”
NDB managing director Moses Liu said: “We will advise once we get an update from the Government.”
Attempts to get comments from the department yesterday were unsuccessful.
Last month, Commerce and Industry Minister William Duma said the National Executive Council (NEC) had approved the release of K200million to be used as relief support for small businesses.
Duma said K20million would be used by the department to help with the administration and monitoring of the funding.
“BSP, together with the State have agreed that of the K100million, the bank will lend to our businessmen and women amounts from K100,000 and above at a rate of 5 per cent for a period of 15 years,” Fleming said.
“In the case of the National Development Bank, we’ve reached an agreement for amounts starting from K100,000 as start-up up to K500,000 at a rate of 4 per cent for a period of 20 years.”

4 comments

  • Government should give more focus on creativity and innovative ideas. they can be used for production of new product and items that may increase into industries to promote exportation. Enough of trade store, hire cars, taxi service, PMV service, Rental homes. Initiate small industries, constructions, IT systems, farming etc.

  • For us as University students who wants to be involved in businesses are looking forward to received good news from the pm and it’s cabinets to promote domestic trade.

  • Agree with Sam Jay.

    Enough of small Hire Cars, Taxi, Trade Stores, Security business etc.

    We must THINK BIG promote and export new original innovations and inventions that is different from any product in the world to grow the economy.

    What about inventing a COVID-19 cure and exporting it to the world.

  • Why are these fundings taking time to be delivered to the banks. SMEs are struggling to cope up with the crisis caused by COVID-19 and yet government is still delaying the funds. Inevitably, most local SMEs have died out because of no support during this time of uncertianty.

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