The Bank of Namibia (BoN) has disbursed N.dollars 85.9 million worth of loans in the re-launch of the Small Medium Enterprise (SME) Economic recovery loan scheme.

A statement issued on Friday by the bank’s director of communications and international relations, Kazembire Zemburuka, said the re-launching of the scheme was in response to economic challenges faced by SMEs due to the COVID-19 pandemic.

“The SME economy recovery loan scheme is starting to play a significant role in supporting the growth and sustainability of SMEs in Namibia,” said Zemburuka.

He said that since the re-launch the scheme has attracted applications from 200 SMEs countrywide.

Zemburuka explained that BoN is the latest institution to offer the scheme for its existing clients.

The loan scheme involves the allocation of N.dollars 500 million to eligible SMEs and SMEs can seek loans from N.dollars 50 000 to N.dollars 10 million.

Zemburuka added that the loans are disbursed at a rate equivalent to the current prime lending rate, with a reduction of 50 basis points and less stringent conditions.

He concluded that 80 out of the 200 SMEs that have submitted their applications have been granted loans, while the remaining 120 applications are undergoing review.

Source: The Namibian Press Agency