Bank Windhoek has announced that it has completed all necessary arrangements to support the Namibian Government’s SME Economic Recovery Loan Scheme, relaunched in February 2023.
The SME Economic Recovery Loan Scheme is an initiative introduced by the Namibian Government in partnership with several local banking institutions, including Bank Windhoek and the Bank of Namibia.
“It is a plan of action to assist SMEs to stimulate economic growth and job creation by providing them with additional funding to continue paying their operational expenses, retain employees and maintain financial stability in Namibia,” said Bank Windhoek’s Executive Officer of Business Banking, Leon Koch.
“Access to finance is a crucial constraint to SME growth. It is the most cited obstacle facing SMEs in growing their businesses in emerging and developing countries. Bank Windhoek is delighted to announce its support for the Namibian Government’s SME Economic Recovery Loan Scheme.”
He added that through this scheme, Bank Windhoek would extend loans to qualifying SMEs at the Prime Lending Rate less 0.5%.
“The obligation to pay the interest and capital on these loans will be deferred for six months from the day of signing the agreement,” said Koch.
Namibia’s economic slowdown since 2016 has severely impacted businesses, particularly SMEs. The government created the scheme to assist SMEs during challenging financial situations.
