NDB taking too long to give out SME loans

WHAT is happening with the K80 million small to medium enterprise (SME) loan parked with the National Development Bank (ND)?
The Bank South Pacific (BSP) has already started issuing their component of K100 million.
When will NDB start issuing the funds?
Why is the bank delaying the disbursement of this Government-sanctioned loan for SMEs in the country?
This delay is causing anxiety.
Can someone explain the reason for the delays?
In a advertisement in June, the NDB management said they were working on finalising a new agreement with the State to facilitate a security support arrangement to make loans more accessible across PNG.
The rationale behind this new arrangement is that most SMEs do not have bank accounts and security, among other requirements.
I do not understand where all these are coming from when the Government said last Sept 4, explains the 100 per cent security guarantees for start-up loan and the components for the various loan facilities thereafter.
Most SMEs have bank accounts, are satisfactorily registered with relevant statutory bodies (Internal Revenue Commission and Investment Promotion Authority), have security provisions (as later requested by NDB) and possess financial literacy accreditations.
So NDB’s reasons for the delay are baseless, useless, undiplomatic and out of question.
What has the bank been doing in the last seven months?
BSP did it in less than three or four months.
NDB’s competence should be questioned in this regard.
What NDB fails to see is that most SMEs in the agriculture sector have invested heavily in seed capital to develop and prepare their land.
NDB surprisingly asks for 100 per cent security collateral for the loan.
What happened to the State guarantees?
It is sad to say that all seed investments have now faltered or rotten away because of the delays.
Who is going to compensate these?
The coronavirus pandemic has caused some to lose their jobs and businesses.
Finding employment is tough.
Most people are overwhelmed by the tough financial situations.
Parents with children in school have been forced to withdraw their children over nonpayment of school fees.
Some have relocated to villages and settlements for cost saving measures.
Understanding the plight of his people, Prime Minister James Marape made this goodwill assistance by delivering K200 million SME agriculture funding last September.
The objective of the loan is to offer a credit facility to enable our citizens to actively participate in agriculture.
However, we don’t understand why government institutions that are established for the convenience of the people of Papua New Guinea seem to have lost sight of their fundamental purpose.
The K80 million does not belong to NDB.
This fund belongs to the people of PNG.
NDB needs to explain the delay in giving out loans.
This is treason.
NDB is a hindrance to progress.
It’s been seven months.
How long more can we wait?
This is just pathetic.
SMEs do not have a voice in the country.
We should change this.

NDB SME Victim,
Lae