FNB Namibia committed to boosting SMEs
Prioritising Economic Recovery Loan Scheme
The finance ministry and the BoN have availed N$500 million to SMEs through participating banking institutions like FNB Namibia.
Staff Reporter - FNB Namibia has welcomed the Bank of Namibia’s SME Economic Recovery Loan Scheme and commits to the deployment of funds aimed at helping businesses get set for economic recovery.
The SME Economic Recovery Loan Scheme is meant to assist distressed small and medium enterprises (SMEs). The scheme will provide funds through participating commercial banks, to eligible businesses to assist them in paying for operational expenses such as salaries, rent and lease agreements, contracts with suppliers.
The ministry of finance and public enterprises, in partnership with the central bank (BoN), have availed N$500 million to SMEs through participating banking institutions.
“In line with the announcement by the ministry of finance and public enterprises and BoN, and as member of Bankers Association of Namibia, FNB Namibia is proud to partner with the ministry and other Namibian banks on this initiative,” FNB Namibia CEO Erwin Tjipuka said.
Tjipuka added: “We commend the ministry of finance and public enterprises and the BoN for the emphatic response to businesses that have faced unprecedented challenges as a result of the adverse impact of Covid-19. We believe BoN’s guarantee allows us to continue honouring our obligation to depositors, while using our credit extension capabilities to be a conduit for government’s support of businesses.”
SUPPORT MECHANISM
“This is evidence that partnerships can help Namibia to decisively respond to genuine economic recovery. The scheme aims to provide additional funding to qualifying businesses to grow the Namibian economy and foster job creation within the country.”
Tjipuka explained that this decision was taken to demonstrate FNB Namibia’s commitment to leveraging the SME Economic Recovery Loan Scheme as an invaluable SME support mechanism. This financial support will allow many to optimise their operations to potentially withstand the current economic pressures, he said.
FNB Namibia’s executive for commercial banking, Sepo Haihambo, said the bank had already begun processing applications.
“We will enhance our processes as we ready ourselves to go live on 13 February 2023, to ensure that customers can access the loans seamlessly across our branch network,” she said.
REAL GROWTH CATALYST
Haihambo further noted that the loan scheme is not about emergency financial relief, but is an opportunity for the banks to contribute to the growth, development and resilience of the entire SME sector.
“The Recovery Loan Scheme with revised requirements, has the potential to act as a real catalyst of growth for SMEs, which is more important than ever in terms of contributing to the country’s sustainable economic recovery.”
“While the previous Covid-19 assistance loans were restrictive in terms of qualifying criteria and what businesses could use the funding for, the application processes for these SME Economic Recovery Loan Scheme are far simpler, and applicants are not limited in terms of how they can use the funding,” FNB Namibia’s head of business banking responsible for SME and mid touch segment, Tomas Iindji, explained.
“The only restrictions are that the loans cannot be used to repay shareholder loans or settle debt and entities and sole proprietors must be tax registered. This means that companies are able to invest the funding into the aspect of their business they need to in order to support its future growth,” he said.
TURNOVER
FNB Namibia assured customers that it will prioritise the provision of SME Economic Recovery Loan Scheme, as the default term lending solution, for business clients with an annual turnover of up to N$60 million.
The application process will include FNB Namibia’s stringent internal credit process, as well the overall qualifying criteria set out by the BoN. Clients are advised to check the FNB Namibia website and App or talk to their relationship managers for more information.
Businesses can apply for support via the SME Economic Recovery Loan Scheme though their relationship managers or branch network countrywide or alternatively send your request to the following email: [email protected]
The SME Economic Recovery Loan Scheme is meant to assist distressed small and medium enterprises (SMEs). The scheme will provide funds through participating commercial banks, to eligible businesses to assist them in paying for operational expenses such as salaries, rent and lease agreements, contracts with suppliers.
The ministry of finance and public enterprises, in partnership with the central bank (BoN), have availed N$500 million to SMEs through participating banking institutions.
“In line with the announcement by the ministry of finance and public enterprises and BoN, and as member of Bankers Association of Namibia, FNB Namibia is proud to partner with the ministry and other Namibian banks on this initiative,” FNB Namibia CEO Erwin Tjipuka said.
Tjipuka added: “We commend the ministry of finance and public enterprises and the BoN for the emphatic response to businesses that have faced unprecedented challenges as a result of the adverse impact of Covid-19. We believe BoN’s guarantee allows us to continue honouring our obligation to depositors, while using our credit extension capabilities to be a conduit for government’s support of businesses.”
SUPPORT MECHANISM
“This is evidence that partnerships can help Namibia to decisively respond to genuine economic recovery. The scheme aims to provide additional funding to qualifying businesses to grow the Namibian economy and foster job creation within the country.”
Tjipuka explained that this decision was taken to demonstrate FNB Namibia’s commitment to leveraging the SME Economic Recovery Loan Scheme as an invaluable SME support mechanism. This financial support will allow many to optimise their operations to potentially withstand the current economic pressures, he said.
FNB Namibia’s executive for commercial banking, Sepo Haihambo, said the bank had already begun processing applications.
“We will enhance our processes as we ready ourselves to go live on 13 February 2023, to ensure that customers can access the loans seamlessly across our branch network,” she said.
REAL GROWTH CATALYST
Haihambo further noted that the loan scheme is not about emergency financial relief, but is an opportunity for the banks to contribute to the growth, development and resilience of the entire SME sector.
“The Recovery Loan Scheme with revised requirements, has the potential to act as a real catalyst of growth for SMEs, which is more important than ever in terms of contributing to the country’s sustainable economic recovery.”
“While the previous Covid-19 assistance loans were restrictive in terms of qualifying criteria and what businesses could use the funding for, the application processes for these SME Economic Recovery Loan Scheme are far simpler, and applicants are not limited in terms of how they can use the funding,” FNB Namibia’s head of business banking responsible for SME and mid touch segment, Tomas Iindji, explained.
“The only restrictions are that the loans cannot be used to repay shareholder loans or settle debt and entities and sole proprietors must be tax registered. This means that companies are able to invest the funding into the aspect of their business they need to in order to support its future growth,” he said.
TURNOVER
FNB Namibia assured customers that it will prioritise the provision of SME Economic Recovery Loan Scheme, as the default term lending solution, for business clients with an annual turnover of up to N$60 million.
The application process will include FNB Namibia’s stringent internal credit process, as well the overall qualifying criteria set out by the BoN. Clients are advised to check the FNB Namibia website and App or talk to their relationship managers for more information.
Businesses can apply for support via the SME Economic Recovery Loan Scheme though their relationship managers or branch network countrywide or alternatively send your request to the following email: [email protected]
Comments
Namibian Sun
No comments have been left on this article