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19.05.2004 Business & Finance

Non-payment of loans impact on NBSSI

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Sekondi, May 19, GNA - Mr. Mathias Atsu Kudafa, Western Regional Manager of the National Board for Small-Scale Industries (NBSSI) said on Wednesday that, the non-payment of loans contracted from and through the Board, was impacting negatively on its activities.

He said, while some beneficiaries have since 1989 failed to pay back the loans they took to expand their businesses, others could not be traced due to insufficient contact addresses provided on their application forms.

Mr. Kudafa, who disclosed these to the Ghana News Agency (GNA) in an interview at Sekondi said the NBSSI was still working hard to locate the defaulters to recover the loans, adding, "lack of an effective monitoring team accounted for the problem."

He said the NBSSI granted a total of 21.9 million cedis from its Revolving Loan Scheme but only 56 per cent of the loan had been recovered.

Mr. Kudafa stressed that so far 83 per cent PAMSCAD Credit Scheme of 70.4 million cedis granted since 1989 had been recovered.

He said the regional secretariat of the NBSSI received 1,000 applications from businesses for financial assistance in 2004, but only NBSSI branches at Asankrangwa and Sefwi Wiawso have so far disbursed 114 million cedis from the Ministry of Women and Children's Affairs (MOWAC) and the Japanese Grant for Women through the Agricultural Development Bank.

Out of the amount, the Amenfi Women Bakers Association who took 84 million cedis 44.8 million cedis, have re-paid.

He said by June this year, the Wassa West and Ahanta West districts would have established Business Advisory Centres (BAC), to assist businesses, traders and farmers on proper book-keeping, managerial and marketing strategies for businesses.

Mr. Kudafa said the Rural Enterprises Project is aimed at introducing alternative livelihood projects in 11 districts nationwide.

This would be done in collaboration with the Centre for Biodiversity and Utilisation Development (CBUD) of the Kwame Nkrumah University of Science and Technology (KNUST).

He said the Sefwi Wiawso and Bibiani-Ahwiaso-Bekwai districts, would also benefit from the programme.

Mr. Kudafa stressed that women and vulnerable groups would be the main target of the project.

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