Govt approves K200mil

The National Business

THE National Executive Council (NEC) has approved the release of K200 million to be used as relief support for small and medium enterprises (SMEs) and other small businesses in the country, Commerce and Industry Minister William Duma says.
He made the announcement on Friday noting the engagement of two banks that would assist in the process.
Duma said K100 million would be allocated to Bank South Pacific (BSP) while the National Development Bank (NDB) would be given K80 million to assist the small businesses.
He said the other K20 million would be parked under the Commerce and Industry Department to help with administration and monitoring purposes.
“BSP together with the State have agreed that of the K100 million, the bank will lend to our businessmen and women amounts from K100,000 and above at a rate of five per cent for a period of 15 years,” he said.
“Whereas in the case of National Development Bank, we’ve reached an agreement with the bank for amounts starting from K100,000 as start-up up to K500,000 at a rate of four per cent for a period of 20 years.
“As soon as the money reach the bank (BSP), they will start to lend to those who meet the requirements.
“But at the same time that K100 million will act as a guarantee – the last resort guarantee in the event that everything else doesn’t work.
“In the case of the National Development Bank, again, the same requirements will be used.
“Of the K80 million allocated to the bank, K40 million will be allocated to the agriculture sector, while for our youths and small businessmen and women, K24 million will be allocated,” Duma said. “And for women alone, we have K8 million allocated.
“And for Bougainville, we have allocated K8 million that will then be able to be accessed by our men and women on Bougainville Island.”

10 comments

  • K20 million to be parked in C&I Dept for administration use. It on again, same old faces running the show. Who knows what will happen to that administration funds? Already loosing faith on PMJM and his government.

  • I can’t tap into it becuae I don’t security. This is good news for ‘already business people’ and not for those who are struggling, those who don’t have Security, very sad ….

  • Samson.bro you are right, how can this be and how can this PNG government help the struggling people
    to make their living. No wonder the saying goes….,the rich will go richer and the poor will go poorer, what about the school drop outs every year???

  • Let me reface this whole news………………Remember the K400 million that was parked with an Agriculture entity some years back and was meant to assist rural famers as per the failed PNG Green Revolution?….Remember all the Paper Farmers saga..?…..I’ll leave it there.

    Finally, 99.9% of all SMEs who are all small people do not have securities as per requirements. They say K100 million will be the guarantee. How do you translate that into the small people’s language and tell that to them.

    Remember the Paper Farmers for the K400 million, some years back? We’re back to where we started from…The gullibility of corruption will rear its ugly head again.

    Why am I not surprised……!!!……………….The Small People Lose Again…

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