K100 MILLION GIVEN TO BSP FOR SME LOANS

By Des Yaninen, 10 October 2020

My experience with SME funding from government to banks across over a decade is that if say K80 million is promised, they first give K10 million, and then 20, and then 15 and so forth and only K60 million out of the 80 is given. Hardly do they ever give the full budgetary allocation. Today was rare. 

Under the Marape government, the entire K100 million allocation for BSP was given in one hit. BSP CEO Robin Fleming said they will start lending tomorrow! 

What's so special about this loan facility byby the Marape government? Well current BSP SME interest rates are around 30%. That means that if you obtain a loan of K100,000, you pay an additional K30,000 in interest. Under this new program you only pay back K5,000 at an amazing 5% interest rate. This has never been done before. Also half of the funds must be for women SMEs. 

To make it even better, typical loan repayment terms are 2 to 3 years for SME loans. Under the Marape SME loan program, BSP's loan term stretches all the way to 15 years! When Prime Minister asked me to speak at the cheque presentation ceremony today, I thanked him sincerely on behalf of all SMEs throughout the country. I want everyone to benefit and not just SMEs in Port Moresby or Lae. 

PMJM also mentioned a new SME program to be launched in 2021 targeting high schools to prepare school leavers to set up their own business. A total of K1 billion has been committed to SMEs over the next 5 years. Big things are happening! Thank you PMJM, SME Minister Duma, DCI, BSP, NDB and all stakeholders. The time is now. 🇵🇬

Des Yaninen 

President 

MSME Council