High praises for the NCB
To date, over 800 persons have been beneficiaries of the National Commercial Bank (NCB) Micro Enterprise Loan Programme, to the tune of $4.5 million.
The Business Orientation Seminar opening ceremony at the Peace Memorial Hall on Monday, August 27, witnessed a celebration of the programmeâs achievements.{{more}}
Since the introduction of the programme in 2001, some 343 persons have received funding for their businesses, which are employing over 500 persons.
Forty persons received training this week at the Business Orientation Seminar, which ran from August 27, 2007, to Wednesday, August 29, 2007.
The reduction of poverty and unemployment and the growth and development of the Micro Enterprise Sector were highlighted as the main goals of the programme.
Funds up to EC$15,000 can be obtained at an interest rate of 10 per cent per annum on a no collateral basis for a period of four years to start a small business.
Delivering the feature address, Prime Minister Gonsalves said the programme was initiated as part of the Unity Labour Partyâs Manifesto plan to create opportunities for Vincentians.
He lauded the NCB for its accomplishments over the past six years, especially in the area of helping to mould and fashion small entrepreneurs into successful business people.
âIâm happy to see that the professionals have seen it as something of value and have embraced it,â said Dr.Gonsalves.
He said the programme was properly researched before it was implemented, and it is no surprise today that it is reaping benefits. The Prime Minister outlined that although he was optimistic that the project was going to be successful, a feasibility study costing $60,000 was carried out to satisfy the banking officials.
Dr.Gonsalves explained that earlier in the project, the delinquent payment over 90 days stood at 14 per cent: Today, the figure stands at 6.7 percent.
âPoor people and micro entrepreneursâ are repaying their loans at a much better rate than persons who would have credited from the Development Corporation previously.
âIt was OK for NCB to give sweet heart mortgages in the loop from the period 1984 to 2001,â said Dr.Gonsalves, adding that the records show that 65 per cent of the holders of those mortgages were delinquent.
Dr. Gonsalves made a political jab at the Opposition New Democratic Party (NCB), saying they did not want to talk about the NCB. The Prime Minister said when he came to office, the NCB, had an overall delinquent loan rate of 22 per cent. Today, the figure has been reduced to three per cent.
He recalled having to place a Special Branch officer at the bank to provide security for personnel at the bank as measures were made to streamline the bankâs activities and âcorns began to be mashed.â
Derry Williams, Deputy Chief Executive Officer of the bank, said his institution started the programme to provide capital for small businesses, while the entrepreneurs themselves provide intangible capital which encompasses integrity, credibility, discipline, hard work, as well as smart work. He explained that without these, the programme would have been long impeded.
He reminded the participants that running their own businesses would be a challenging task as he promised to help the participants become more competent managers.
The risk associated with the programme is very small when compared to that of other programmes undertaken by the bank, said Desmond Morgan, NCBâs Chairman.
Morgan used the opportunity to challenge other banks to initiate similar programmes to provide opportunities for the small business people who have difficulties sourcing capital for their projects.
âI donât think itâs fair for us to take all the risk and other banks are taking the cream off it,â said Morgan.
Morgan emphasized that the programme can be a stepping stone for the participants and their families to achieve greater things.
The NCB Micro Enterprise Loan Programme was initiated by the government of St.Vincent and the Grenadines through funds secured from the Caribbean Development Bank (CDB) and the NCB.(HN)
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