By MATTHEW VARI
NATIONAL Development Bank Managing Director Moses Liu expressed his concerns to the treasurer and planning minster of the limited funding allocated of K40 million to the state bank would impede growth in the Small to Medium Enterprise (SME) sector, yesterday at the 2015 budget lockup at Parliament.
Mr Liu reminded the ministers that the National Development Bank was tasked by the state in 2013 to deliver one of the government’s key priority areas in building the SME sector.
He said to date the bank has only been able to fund 40 percent of loan applications put through by aspiring and existing business owners in the country because they were not getting the required funds needed to keep up with the demand, which was K100 million plus annually for the next five years.
“The situation with the K40 million allocated to NDB will impede the growth of the SME sector,” Liu said.
“The sector needs full funding for the 5 year period outlined in the government’s SME stimulus drive, and it is a pity that the government couldn’t fund us with what we need.”
Responding to the NDB boss’s concern, Treasury Minister Patrick Pruaitch called the actual contribution of the bank in question in terms of growth levels it has managed to achieve in the sector.
“You have done well, but as a government we have not seen where you are spending money, and from a treasury perspective you have to show us where the growth rates are,” Minister Pruaitch said.
“We need to appreciate where you are spending- it is give and take.”
Mr Liu, however, interjected that NDB was on par with its reporting to both treasury and the planning ministry.
Treasury Secretary Dairi Vere added to the budgetary allocation response of his minister that allocations were given according to the bidding process that takes place and that not everyone will receive exactly what they wanted as funds in the various sector envelopes were limited.
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