NDB loaned K2.6 million

By DALE LUMA
COMMERCE and Industry Minister William Samb says a two-page report by the National Development Bank (NDB) shows that only K2.6 million has been loaned out from its K80 million soft lending facility in partnership with the Government.
Samb told The National in an interview that it was disappointing for the bank to provide a two-page report outlining the expenditure of K80 million.
“To send me two-page report for K80 million is very disappointing,” he said.
Samb said a proper report needed to be provided by the bank to his department to justify a second tranche of funding.
According to the figures in the report provided by NDB, there were 21 successful loan applicants.
By region, K1.7 million was loaned out to 10 customers from Southern, K223,659 to two customers in Highlands, K256,362 to five customers in Momase and K365,586 to four customers in the New Guinea Islands.
The report stated that there were nil arrears and no loan written offs.
The Government gave K80 million to the NDB and K100 million to Bank South Pacific Financial Group Ltd (BSP) in 2020 as security to provide soft loans to customers under its small-to-medium enterprise (SME) policy.
National Development Bank’s component was for start-ups whereas BSP’s was for established small-to-medium enterprises (SMEs).
BSP has so far loaned out more than K122 million on its credit enhancement scheme from the K100 million received in 2020 and received its second tranche of K100 million for 2021 on Thursday.