Minister reveals K100mil to bank for small businesses

GOVERNOR-General Sir Bob Dadae will be signing an agreement with Bank South Pacific (BSP) for lending to small businesses to begin following Cabinet’s approval of K100 million to be allocated to the bank, according to Trade and Industry Minister William Duma.
Duma said this was in line with Cabinet’s approval to establish the financing partnership agreement with BSP and National Development Bank for the roll out of the K200 million appropriated under the 2020 Budget to the Department of Commerce and Industry.
“For BSP, the governor-general will sign the financing partnership agreement with BSP on behalf of the State for lending to commence in earnest,” he said in a statement.
“Through the utility of the agreements with the banks for financial access, I believe that the real impact will occur in stimulating growth of this important sector of the economy.”
Duma said K100 million would be allocated to BSP while NDB would be given K80 million to assist small businesses.
He said the other K20 million would be parked under Commerce and Industry Department to help with administer and monitor the funding.
Duma said the Government also encouraged businesses involved in the micro, small to medium enterprises in downstream processing and diversification in other sectors of the economy to take advantage of the government relief.