Liu: NDB to loan K40m to SMEs in next year

 By GYNNIE KERO

THE K40 million total allocations for the National Development Bank in the 2015 Budget will all be lent to the small and medium enterprises sector, managing director Moses Liu says.

Despite the K40 million being below 50% of the requested ceiling of K100 million for next year, he said the bank accepted the funding.

He stressed that the amount was not adequate for funding the SME sector as the loan demand is more than K100 million every year.

Liu said: “The government should be serious in implementing its SME stimulus package by funding NDB K100 million per year that was promised for this key intervention to grow the SME sector. 

“This sector is no longer passive and they are demanding that their loan application be funded.

“The funding of the SME sector should be demand driven and not fund driven; a fixed amount of K100 million should be set aside every year for the next three years in the national budget by the Treasury Department/ Government.”

Responding to comments from Treasurer Patrick Pruaitch on government not being aware of where National Development Bank spent its yearly allocations, Liu said the bank does provide acquittals to the government.

“Few acquittals by sector funding of allocated grants from the government for 2012, 2013 and year to date to July were provided to the Department of Treasury and National Planning Officials.    

“Despite this, the Treasury Minister, Treasury Secretary and National Planning Acting Secretary keep on saying year after year that NDB has not provided these details which were not acceptable,” he said.