Government will not give out cash handouts as part of stimulus package: PM

THE Government will not give cash handouts as part of its economic stimulus package, says Prime Minister James Marape.
Marape told The National that the stimulus package was not about handing out cash to people and businesses.
“I forbid cash grants to citizens or businesses. We are working with the banks who want to partner us on low-cost lending,” he said.
“Instead of giving direct grants, part of the stimulus package would be putting the funds we have into banks including the Bank South Pacific (BSP), National Development Bank (NDB) and Kina Bank who have shown interest to partner with us.”
Marape said the BSP lending rates would be 5 per cent for 15 years, NDB was 4 per cent for 20 years, and Kina Bank 4 per cent for 20 years.
He said the Government would deposit funds with the banks to be the security for businesses and small businesses. “We are looking at NDB for the smallest businesses, the mums and paps businesses especially in the districts across the country,” he said.
“We will try to embrace everyone.
“The big as well as the medium and small businesses.
“All they have to do is clean their books, go to the banks.
“First and foremost, we are asking the banks to be lenient with the businesses.
“If they already have borrowing in their business portfolio, the banks have given their word that there would be a deferment of paying interest on loans for three months.”