Deals delayed scheme: Official

NATIONAL Development Bank (NDB) chairman Michael Mel says the bank had to delay the implementation of the K80 million Government-guaranteed credit facility to micro small medium enterprises (MSME) because the initial agreements were not customer-friendly.
The bank had signed an agreement with the Department of Commerce and Industry in September last year but did not start the facility until a new agreement was signed last month.
Mell said the initial agreement needed a 30 per cent equity for customers to get loans, and that the department officers would deal with applicants, which was wrong.
“Every customer is expected to get their own security, and the equity remained at 30 per cent which is our commercial rate,” Mell said.
“On top of that, we had to sign an agreement with the department, and their corporative society staff will come here and act as our loans officers.
“They would have approved the loan and give it to the people.
“I said no, you cannot do that, because you are not a bank.
“You are a department so you cannot come in.”
Mell claimed that there was no record of the K20 million.
Of the NDB’s K80 million, he said nothing was spent. It was kept for a little over a year. The same K80 million we are now rolling out.”