Govt approves K200mil
The National Executive Council (NEC) has approved the release of K200 million to be used as relief support for small and medium enterprises (SMEs) and other small businesses in the country, Commerce and Industry Minister William Duma says.
He made the announcement on Friday noting the engagement of two banks that would assist in the process.
Duma said K100 million would be allocated to Bank South Pacific (BSP) while the National Development Bank (NDB) would be given K80 million to assist the small businesses.
He said the other K20 million would be parked under the Commerce and Industry Department to help with administration and monitoring purposes.
“BSP together with the State have agreed that of the K100 million, the bank will lend to our businessmen and women amounts from K100,000 and above at a rate of five per cent for a period of 15 years,” he said.
“Whereas in the case of National Development Bank, we’ve reached an agreement with the bank for amounts starting from K100,000 as start-up up to K500,000 at a rate of four per cent for a period of 20 years.
“As soon as the money reach the bank (BSP), they will start to lend to those who meet the requirements.
“But at the same time that K100 million will act as a guarantee – the last resort guarantee in the event that everything else doesn’t work.
“In the case of the National Development Bank, again, the same requirements will be used.
“Of the K80 million allocated to the bank, K40 million will be allocated to the agriculture sector, while for our youths and small businessmen and women, K24 million will be allocated,” Duma said. “And for women alone, we have K8 million allocated.
“And for Bougainville, we have allocated K8 million that will then be able to be accessed by our men and women on Bougainville Island.”