Businesses use P250m of COVID-19 credit scheme
Friday, March 18, 2022 | 350 Views |
On the mend: Tourism enterprises were amongst the leading beneficiaries of the loan guarantee scheme PIC: THALEFANG CHARLES
The scheme was launched as part of a range of government’s COVID-19 interventions aimed at helping businesses out of the pandemic.
The scheme aimed to encourage bank lending to qualifying businesses by offering a partial government guarantee of 80% to commercial banks and banks established by legislation. The banks would cover the remainder of 20% of the risk of the financial facility.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...