26 January, 2021, 8:57 pm Central - 25°C Rain

Government to set up an institution to give loans for small businesses

Government to set up an institution to give loans for small businesses

By Rashika Kumar
Tuesday 01/12/2020
Minister for Economy, Aiyaz Sayed-Khaiyum

Minister for Economy, Aiyaz Sayed-Khaiyum says they are currently working on setting up an institution that would give loans to the small and medium enterprises and has also challenged the Fiji Institute of Accountants, Fiji Chamber of Commerce and Industry and the Fiji Commerce and Employers Federation to set up an institution that will be assisting these small or medium businesses.

The Minister says that the Institute of Accountants could assist small business by providing them with accounting services such as doing their cash projections free of charge.

He says these services could be provided in exchange for points that would contribute towards the renewal of their practicing certificates.

Meanwhile, Association of Banks Chairman, Rakesh Ram says commercial banks are lending $300 million to small, medium enterprises which means their exposure to these enterprises is $300 million.

He says the segment which is suffering the most during COVID-19 is these small, medium enterprises which will also mean that this segment will have the highest level of doubtful or bad debts.

Ram adds that if they believe that 50% of these small, medium businesses will be able to remain viable, that also means that banks will have to write off about $150 million as doubtful debts.

Owner of The Merch, Watisoni Nata Junior has highlighted that small businesses are working together.

He adds that some challenges they are currently facing is the high cost of online banking and the cost of developing websites.

Meanwhile, Director, Weta Coffee, Mue Bentley Fisher is urging business to collaborate with smaller businesses and is also urging banks, government agencies and institutions to work together and share data to make doing business easier for them.

Stay tuned for the latest news on our radio stations

CFL radio frequencies
Drug and substance abuse in Fiji
Substance abuse including marijuana cases are on the rise amongst students in schools during the COVID-19 period, and urgent action is required.
34 days ago

Tropical Cyclone Yasa
The impacts felt from Yasa were large and wide. Many affected people had their access to essential things, like food and water, cut ...
42 days ago

Ratu Naiqama becomes Leader of Opposition after Rabuka resigns
Rabuka made the announcement while responding to the opening of the 2020-2021 Parliament ...
43 days ago
Coca Cola Games, Vodafone Deans Rugby and other school comps to go ahead this year
Good news for students as all sporting competitions including the Coca Cola Games and Vodafone Deans Rugby Competition will go ahead this year. Edu...
4 hours ago
People in TC Yasa affected communities to benefit from BRED Bank’s donation of $112,500
People living in Tropical Cyclone affected areas can expect more assistance after BRED Bank Fiji made a cash donation of $112,500 to the Prime ...
3 hours ago

FRCS seizes smuggled goods
Unscrupulous traders have been warned as smuggled goods such as adults and children's wear, school bags and imitation jewellery have been seized by ...
3 hours ago

Man dies after falling from a power pole in Labasa
A man who was employed by an electrical contractor and fell from a power pole and injured himself on the 9th of this month at Malau in Labasa passed ...
3 hours ago

Govt should rescind decision regarding tertiary students immediately – Gavoka
The solution is clear - free tertiary education for all students. That is the comment from SODELPA leader, Viliame Gavoka who is calling on ...
4 hours ago

Flood alert in place
If you are living in low lying areas and areas adjacent to rivers and streams from Serua to Togalevu in Viti Levu, and Vanua Levu and surrounding ...
4 hours ago