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| Wednesday, 28 July 2004 |
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NDB to finance entrepreneurs in Ampara The National Development Bank (NDB) through its refinancing scheme and its direct lending operations, has granted over Rs 20 billion in loans to assist more than 30,000 SMEs. This has created over 200,000 employment opportunities for youth in addition to other socio-economic benefits specifically to the provinces, Assistant General Manager SMEs and Auto Finance A.L. Somaratne said. Addressing a seminar for entrepreneurs from the Ampara District recently to educate them on the bank's services he said that the NDB from its inception in 1979, has been helping the Small and Medium Enterprises (SMEs) in the country through the "Small and Medium Industries (SMI) Refinance Loan Scheme". Under this scheme, several commercial banks and Development Financial Institutions (DFIs) granted long term assistance to the SMIs countrywide. The NDB refinanced such loans granted by these participating credit institutions (PCIs)." He said, "since long term lending was a new experience to most of these PCIs, the NDB took the initiative in training lending officers of these institutions to appraise and follow-up on projects financed. In 1996, the Bank took a decision to lend direct to this sector as well, while continuing with the SMI refinancing scheme. Since then, the Bank has opened 13 branches in addition to its SME lending unit at the Head Office. Somaratne said "NDB Bank Ltd (NBL), our commercial banking arm which is part of our NDB Group, will provide all commercial banking facilities required by entrepreneurs." Senior Manager, SME Development of NDB R. D. Abeywardena outlined the key loan schemes that are operated by the Bank to assist entrepreneurs. He said that one of the major schemes which is meant solely for micro enterprises is the KfW Loan Scheme. Under this scheme Rs 300 million has been made available to the Bank by the German Development Bank (KfW) through the Government of Sri Lanka to assist micro enterprises in the country. Any industrial or trading enterprise where the value of fixed assets does not exceed Rs 3.0 million, could seek assistance under this scheme to set up a new project or expand an existing business unit. He said that a special scheme is available to assist entrepreneurs in upgrading their enterprises. Under this scheme assistance could be obtained to purchase quality control equipment and also to train the staff and to obtain services of consultants. To purchase quality control equipment a maximum of Rs 1.3 million can be obtained of which 25 per cent would be an outright grant and the balance 75 per cent is given as a term loan at 3 per cent interest per annum. In addition for purposes of staff training and consultancy services a maximum of Rs. 650,000 could be obtained. Here too, 25 per cent would be an outright grant with the balance 75 per cent given as a term loan bearing interest at 3 per cent per annum. Loans are also available under SMILE I Revolving Fund to the extent of Rs 5 million. Projects where the value of assets do not exceed Rs 10 million (excluding land and buildings) could apply for assistance under this scheme. |
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