Finalising of deal behind delay of K80mil facility

By DALE LUMA
THE National Development Bank (NDB) says the K80 million credit facility for micro small-to-medium enterprises (MSMEs) is yet to get off the ground.
The delay was due to the finalisation of an agreement signed between the bank and the Department of Commerce and Industry last Sept 25.
Acting managing director Aaron Underdown told The National that the rollout should happen in the first quarter of the year.
“An important part of the signed agreement is currently being worked (out which) unfortunately has delayed the rollout,” he said.
Underdown did not specify what aspect of the agreement was delaying the process.
On how funds will be accessible to MSMEs who may not have capital, Underdown said: “We have no appetite for nil contribution. It is a loan, not free money.
“The funds will be drawn down in line with the proposals.
“A portion of the funds will be set aside for possible impairments.
The bank has launched four loan products: Agriculture, Bougainville enterprise, youth and small business enterprise and women in business.
Former managing director Moses Liu, during the launching of the loan products, said that one of the main requirements was a financial literacy training certificate.
“The maximum loan to get is K500,000 and a minimum of K5,000,” he said.
The four loan products have a repayment term of up to three years, depending on the purpose of the loan, with a four per cent interest rate.
The women in business loan product will also consider the age of the asset being financed.