Govt’s arrangement with BSP not helpful

THE Government presented K100 million as security to Bank South Pacific for eligible small and medium enterprises (SMEs) to get loans.
This will not benefit the majority of citizens.
Although it’s a timely assistance by the Government to encourage local business during our trying times, the ones that do not have assets to access the funds from BSP will be left out.
The wealthy will be better off.
All financial institutions have their own protocols to comply with and it will not be easy for a tucker box operator to access these funds as most of them do not have securities.
BSP CEO Robin Fleming was reported saying “prospective SMEs must have net profit margin after text of K500,000 which will enable clients to borrow K300,000 over three years and K400,000 over five years.”
This confirm that the K100 million injected to BSP was not for the informal sector but designed to motivate those who were already dealing with millions of kina.
The majority of the population who are living below the poverty line will not benefit from this.
They will continue to struggle.
How can the Government ignore the poor?
There is no equality in this.
The same was done with the K200 million that was allocated for the housing scheme. Only some workers were able to access the benefit.
Clerical workers were left to suffer in the settlements and most of our people are not income earners.
For equal distribution of services and benefits, relevant public offices should do a wider consultation before actually distribution.

Jeffsatu
Lypin Lokait
NCD