NDB to roll out K80mil SME credit scheme


THE National Development Bank can now roll out the K80 million credit facility to micro, small and medium enterprises (MSMEs) following an agreement signed with the Government yesterday.
NDB acting managing director Gary Coplin said the financing partnership agreement covered its K80 million credit facility which the bank could now disburse to MSMEs.
“This is the Government’s money we are lending,” he told The National.
“We are holding this money in trust on behalf of the State and the people of PNG, so we will be responsible in the way we lend to eligible businesses across the country.”
Coplin said the four loan products, given at a four per cent interest rate, included agriculture, Bougainville enterprise, youth and small business enterprise and women in business.
According to the agreement, the Government approved and earmarked an appropriation of K200 million as part of its public investment policy to stimulate growth in the MSME sector.
Under the financing partnership agreement, K80 million was allocated to NDB last year, as an annual investment grant under the MSME credit facility.
Under the MSME credit facility, NDB will offer affordable MSME loan facilities to eligible Papua New Guinean nationals and micro to medium sized business owners including in the agriculture sector.
The partnership agreement was executed by Governor General Sir Bob Dadae.