Kapris announces K300m for business ventures

National, Normal

The National –Friday, January 7, 2011


COMMERCE and Industry Minister Gabriel Kapris has announced the Government’s approval to park K300 million with commercial banks as collateral to assist Papua New Guineans to venture into business activities.

Kapris said the government, with the help of the World Bank, will start the programme next year.

He said the guidelines is being worked on and expected to be finalised by the end of the year for implementation next year.

Kapris said an agreement would be signed between the Government and World Bank that would comprise of 45% funding from World Bank, government component 25% and 20% from commercial banks.

He said a further 50% risk fund would be shared by the International Finance Corporation, World Bank and the Government.

He said a person seeking loan must come up with 10% or K10,000 if he wants to borrow K100,000 to start up business.

“It will be a revolving fund with money parked with commercial banks for indigenous Papua New Guineans.”

He said when a simple Papua New Guinean  goes to the bank he does not have collateral so the government is assisting.

“We want to see many more Papua New Guinean millionaires and this is the beginning of that dream.” Kapris said.

He said women who are married to foreigners may not qualify because of the perception that they are already well off and a better advantaged than an ordinary Papua New Guinean.

Kapris is excited that with the K120 million business development grant being paid to landowners as seed capital, a further K300 million will be available for all other Papua New Guineans to venture into small to large scale businesses.

He said the Treasury Department was working on a criteria to qualify for a BDG loan and one would be that only indigenous Papua New Guineans are eligible to seek loan from a commercial bank as business start-up capital.