Govt, banks to sign deal regarding relief package

PRIME Minister James Marape says they will be signing a memorandum of understanding (MoU) this month with two banks in the country regarding the K200 million relief package for businesses.
He told a radio talkback show yesterday that the MoU was expected to be signed at the end of this month as part of the Covid-19 relief package from the K600 million announced in April by Government.
“Later this month, we will be signing an MoU with BSP (Bank South Pacific) and NDB (National Development Bank) and we will be distributing K200 million to go through the banks for SME lending or small business lending,” he said.
Micro Small Medium Enterprise (MSME) Council president Desmond Yaninen told The National this week that they understood the funding under the Covid-19 SME economic stimulus was ready and Government was paying all MPs directly.
“It is up to districts to decide how to use it and we hope it will be used to relieve the SMEs from the hardships faced by the Covid-19,” he said.
“As for the specific loan funds to the banks, nothing has been given yet.”
Meanwhile, it is understood that the appropriation made recently by the Government from the K200 million promised for SME soft lending include:

• K100 million go to Bank South Pacific;
• K80 million to the National Development Bank; and,
• K20 million to the Department of Commerce and Industry.