SMEs’ K200mil explained

The National Business

PRIME Minister James Marape says the K200 million allocated in the 2020 Budget to assist small to medium enterprises will be paid to the National Development Bank (NDB) and commercial banks too.
Marape said it would not be paid only to the NDB which recently said it was still waiting for the Government to pay it.
He said once the funds became available, the public would be informed.
“Once it is received, NDB will announce to the public the products, interest rate and terms and conditions on how the funds will be lent.”
But Marape clarified that the K200 million would be paid out to the NDB and commercial banks.
“(It) is not just for NDB but a programme for SMEs and businesses in the country including agriculture,” he said in a recent interview.
“The NDB has products running and we will work with them.
“But it’s not money earmarked strictly for NDB.”
Marape said BSP, Kina Bank and others would offer the lowest terms possible of lending to the business community, parents and citizens who wanted start-up capital.
“We will talk to NDB (about) this misinformation,” he said.
Marape also explained that the funding would cater for start-up capital and to assist existing businesses.
“We will talk to NDB just like we are talking to BSP, Kina Bank and other banks in the country,” he said.
“I’m envisaging four per cent and above, and a 20-year repayment period.”

3 comments

  • In my earlier comments I expressed the view the funding should not be limited to NDB but rather available to all banks. It’s pleasing the Prime Minister has expressed the same view. You need to create a competitive environment of funding sources which will only benefit SMEs.

  • Thank you PMJM..this is a huge relieve for struggling SME’s in the country trying to meet the huge interest rates charged by the commercial banks when on the other hand the cash flow in the last couple of years is really low which greatly affects the smooth operations of all the operating SMEs.

Comments are closed.