Small fisherman can now have access to funding through a credit facility for the fisheries sector.
The National Fisheries Authority (NFA) has made K10 million available to two Micro Bank Institutions.
Two separate Memorandums of Agreement were signed today between NFA, Nationwide Micro Bank and PNG Microfinance Limited.
All parties put pen to paper this morning to seal the agreement.
NFA signed the agreement with Nationwide Micro Bank and PNG Microfinance Limited for a credit facility for the fisheries sector.
Each institution will receive K5 million to facilitate the credit scheme to enable Small to Medium Entrepreneurs in the Fisheries sector to apply and have access to these funds.
The first K1 million was presented to the institutions.
The release of next K1 million will depend on when 75% of the first is given out in loans.
This arrangement is aimed at empowering small operators to start new fishing businesses, improve current operations, or to move into new markets.
An agreement in 2007 with the National Development Bank worth K15 million has not been fully utilized due to strict requirements by the Bank.
With this new agreement, NFA hopes for better results in reaching the rural population through these Micro banks’ network and flexible loan application requirements.
NFA is confident that Micro banks with their extensive coverage and knowledge in dealing with the unbanked, are better positioned to carry out this facility.
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