The National Government on Thursday presented K900, 000 to Bank South Pacific to off-set the development and roll out of the Small and Medium Enterprise lending software system called ‘LendFast.’
The software system is a product of cooperation between the Government, BSP and the World Bank through the International Finance Corporation.
Minister for Commerce and Industry, Wera Mori, presented the cheque to BSP CEO, Robin Fleming, today.
Minister Mori, said the PNG SME access to finance project through the ‘LendFast’ system, has been successful given the good response to the facility by the SME sector.
He commended BSP for the implementation of the system, providing loans to SME’s which in turn will boost the economy.
“Today we acknowledge and witness another milestone achievement by Bank South Pacific, in the successful roll out of the loan originating platform, to enhance loan underwriting standards.
“This will result in more employment growth and employment” he adds.
So far K79 million in loans have been lent to SME’s throughout the country under the ‘LendFast’ system.
- Highlands Region - K16 million (254 loans)
- Momase Region - K21 million (413 loans)
- NGI Region K17 Million (299 loans)
- Southern Region K5 million (77 loans)
- NCD K20 million (351 loans)
The development of the software, has cost BSP K20 million, but through the risk sharing facility agreement with the Government and the World Bank, they have recouped some of that cost.
BSP CEO, Robyn Fleming, said the lending system was very sustainable, and he was happy to see that there was consistent political support.
He added it was a mutual objective to see SMEs prosper in the country.
“We recognise as much as Government does, we have to develop the businesses of the future. Many of the customers that we have today started as small businesses.
“So it helps to broadening the employment base, help t broaden the tax base, and more importantly it helps our smaller businesses to grow into bugger businesses,” Fleming said.
The ‘LendFast’ system was developed after four years of close consultation between the BSP and the World Bank and the Government.
Since the introduction of the Government SME policy, BSP has lent K500 million in SME loans.