DBN grants its first three loans

WINDHOEK – The Development Bank of Namibia (DBN) on Thursday granted its first loans, valued at N$30,74 million, to three beneficiaries of which two are black economic empowerment companies, Aqua Utilities Corporation and Namibia Stone Processing.

Namibia Stone Processing received N$8 million and it will soon start what it describes as one of the biggest dimension-stone processing plants in southern Africa. Aqua Utilities Corporation received N$2,74 million and it will go towards building a seawater purification plant for a fishing company, NovaNam Deep Ocean Process.The third beneficiary of the loan is a local authority, which could not be announced as it is still finalising its internal confirmation process.Speaking at the occasion, Chairman of DBN Board of Directors Sven Thieme pledged the bank’s commitment to improve the welfare of the country as a development finance institution, saying DBN will continue working hard to build an entity that remains at all times and several foundations have been put place to ensure that the bank achieve its objectives.Meanwhile, DBN received a boost to its capitalisation as the assets, liabilities, rights and obligations of the Development Fund of Namibia (DFN) have been transferred to DBN.Officiating at the occasion, Finance Minister Saara Kuugongelwa-Amadhila said: “The Development Bank’s newly assumed responsibility for the DFN loan book means that beneficiaries of DFN loans now have a responsibility towards the bank.Therefore the dissolution of DFN does not mean that those who had obligations to the Development Fund are now relieved from those by virtue of such dissolution, but they will continue to be obliged to honour such obligations to the Development Bank.”According to Kuugongelwa-Amadhila, DFN’s balance sheet is valued at approximately N$200 million enhancing a cash balance of N$139 million.In addition to the N$93 million from the 2005/06 National Budget, raises the current capitalisation of the Development Bank from N$125 million to N$357 million, while, another N$93 million is foreseen in the 2006/07 National Budget.However, Kuugongelwa-Amadhila could not announce the reverted assets as yet since it has to be finalised in due course.She also urged DBN to establish linkages to international financial institutions in order to strengthen the financial position of the bank and render the technical assistance that will be needed to ensure the success of the bank’s projects.-NampaAqua Utilities Corporation received N$2,74 million and it will go towards building a seawater purification plant for a fishing company, NovaNam Deep Ocean Process.The third beneficiary of the loan is a local authority, which could not be announced as it is still finalising its internal confirmation process.Speaking at the occasion, Chairman of DBN Board of Directors Sven Thieme pledged the bank’s commitment to improve the welfare of the country as a development finance institution, saying DBN will continue working hard to build an entity that remains at all times and several foundations have been put place to ensure that the bank achieve its objectives.Meanwhile, DBN received a boost to its capitalisation as the assets, liabilities, rights and obligations of the Development Fund of Namibia (DFN) have been transferred to DBN.Officiating at the occasion, Finance Minister Saara Kuugongelwa-Amadhila said: “The Development Bank’s newly assumed responsibility for the DFN loan book means that beneficiaries of DFN loans now have a responsibility towards the bank.Therefore the dissolution of DFN does not mean that those who had obligations to the Development Fund are now relieved from those by virtue of such dissolution, but they will continue to be obliged to honour such obligations to the Development Bank.”According to Kuugongelwa-Amadhila, DFN’s balance sheet is valued at approximately N$200 million enhancing a cash balance of N$139 million.In addition to the N$93 million from the 2005/06 National Budget, raises the current capitalisation of the Development Bank from N$125 million to N$357 million, while, another N$93 million is foreseen in the 2006/07 National Budget.However, Kuugongelwa-Amadhila could not announce the reverted assets as yet since it has to be finalised in due course.She also urged DBN to establish linkages to international financial institutions in order to strengthen the financial position of the bank and render the technical assistance that will be needed to ensure the success of the bank’s projects.-Nampa