NDB limits loan due to lack of funding

The National,Thursday June 30th, 2016

THE National Development Bank cannot process loans totalling K45 million per year because of insufficient funding from the Government, the bank says.
According to a paid advertisement, it had to turn away customers because there was no money to lend.
The bank noted that the implementation of the small to medium enterprises policy in March this year had the potential to increase the number of SMEs and employment for people to stimulate growth. But the lack of funding by the Government continued to hinder the growth of the SME sector in the country.
It said the Government provided K165 million over three years when it was supposed to provide K300 million – a shortfall of K135 million.
The demand for SME loans increased by an average of 20 percent per year to K135 million per year over the last three years.
The National Development Bank has not been able to fund 40 per cent of the approved loans due to lack of funding.
The total NDB lending to SMEs by provinces as of December 31 last year rated the National Capital District as highest at 21 per cent, followed by Western Highlands with 12 percent, East New Britain 11 percent, Morobe 8 per cent, West New Britain 7 percent, Madang  6 percent, Milne Bay  5 per cent, and Eastern Highlands 5 per cent.