BSP happy to participate in government’s SME plan

BANK South Pacific (BSP) says it is pleased to be selected by the Government to participate in the SME (small and medium enterprise) programme.
Chief executive Robin Fleming told The National that the bank would await official advice from the Department of Commerce and Industry so it could progress to the execution of agreements with the State.
BSP is one of two banks approved by Cabinet for funds to be parked to enable soft lending to businesses.
The bank has been appropriated K100 million while the National Development Bank (NDB) has been earmarked for K80 million.
Prime Minister James Marape said in Parliament recently that the government had asked BSP to draw down their own funds for the programme.
“We are particularly keen on a partner bank that has sufficient liquidity (money) and BSP qualifies,” Marape said. “We have spoken with BSP, we will give K100 million as security but BSP will draw down their own fund and we are asking BSP to mobilise K300 million, K400 million, K500 million. This investment will be going on for the next five years and another five years after 2025.”
Marape said all Papua New Guineans with genuine businesses across all levels of sector would qualify for the K200 million budget allocation.
He said Commerce and Industry Minister William Duma would sign an agreement with BSP this week.
“This allocation of fund will go in at a level of security and assurance with the bank that all Papua New Guinean micro, small or medium enterprises who need money to make a business have this layer of added security.
“Instead of a grant, it is something we are putting in the banks to give as soft loans.”