By Courage Mbon.
Microfinance Banks who participated in loans disbursement with responsibility to recover have been urged to expedite action on recovery of previously disbursed SMSDF loans to enable government disburse another round of interest free loans to businesses on time. The SSA on Microfinance and Enterprise Development to the Akwa Ibom State Governor, Mr Ime Uwah stated this at the end of a closed door meeting with heads of Microfinance Banks participating in The interest free loan scheme.
Uwah said the loans were revolving funds and not grants and as such should be paid back so as to avoid defeating the aim of the scheme. He stated further that recovering these loans will encourage a healthy business culture, foster accountability as well as make it possible for more entrepreneurs in the state to benefit from the loans.
Mr Ime Uwah stated that the State Government had paid up front, the single digit interest on the loans on behalf of beneficiaries to make the loans interest free. He indicated the readiness of the government to impact more businesses through the interest free loans so as to boost the economy of the State.
Speaking to newsmen after the meeting, the managing director of Madelyn Microfinance Bank, Mr Ben Udonwa said the Banks will do all within their capacity to assist the government recover these loans. The MD said the SMSDF loans which the government helped to make interest free was a massive input into the state’s economy and recovering same would ensure that more businesses are impacted positively by the scheme. He lauded the Udom Emmanuel administration for reawakening the spirit of enterprise in the state saying that posterity will be kind to this administration.