BANK of Namibia (BoN), through the small and medium enterprises (SMEs) recovery loan scheme, has completed the disbursement of N$500 million.
This money was loaned to 433 SMEs across various sectors, particularly in the construction, real estate and business services.
The latest annual report by the central bank showed that 99.9% of the total loans were disbursed through four local commercial banks.
“Following the conclusion of the disbursements, the scheme effectively transitioned into a monitoring stage,” the BoN says.
The scheme was first launched in 2020 by the government to support businesses affected by pandemic-related lockdowns.
The central bank and the Ministry of Finance redesigned and reintroduced the scheme on 6 February 2023, with relaxed criteria to improve accessibility for struggling businesses.
The loans range from N$50 000 to N$10 million and offer favorable terms, including a six-month interest and capital repayment holiday, with interest rates set at prime minus 50 basis points.
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