FNB backs out of solar funding

First National Bank of Namibia (FNB) said it will no longer process new applications for its low-cost funding of solar system.

FNB’s Manager: Business Development Danny Titus, told The Namibian late yesterday afternoon that ‘no new applications will be taken. Those that we already have will still be processed’. In November 2008, FNB concluded an agreement with the Ministry of Mines and Energy, the Renewable Energy Financing Initiative, which provided N$6 million under a revolving credit guarantee scheme for those wanting to install solar power systems.According to Titus, the loans were payable over five years at a three per cent interest rate, very favourable compared to the current 12 per cent rate. Farmers mostly made use of this fund, installing solar water pumps costing between N$65 000 and N$120 000.Of late, the bank has experienced tremendous problems with suppliers and applicants who don’t fully understand that bank systems, including a full credit check, would still be part of the loan application process.