The People’s Micro Bank Ltd will become a commercial bank next year.
This was revealed by Minister for National Planning and Implementation, Richard Maru, on the floor of parliament on Wednesday.
He said the Government has captured it in the 2018 budget.
The Minister was replying to questions from Finschhafen MP Reinbo Paita, who highlighted the hardships faced by the rural populace to get loans and do normal banking transactions because of the high bank fees.
“People in the villages cannot access loans because most commercial banks have unfriendly conditions,” said Paita.
Maru said in the past 3 years, the People’s Micro Bank had become profitable, which is why the government has included it in the 2018 budget.
“That is why we put some money in the budget to prepare the bank to apply for a licence to become a fully-fledged commercial bank next year,” said Maru.
He said he told the National Development Bank that this will be the last time the government will provide funding to the People’s Micro Bank.
“It now needs to upscale and become a fully-fledged commercial bank,” said Maru.
He says by the time the government releases the 2018 budgeted funds, the micro bank will be a commercial bank.
People’s Micro Bank is a subsidiary of the National Development Bank.
(Picture: PMB)