LAUNCH OF TOURISM PROMOTION AUTHORITY CREDIT SCHEME - 01st November 2007

The National Development Bank in its effort to provide and bring banking facilities to the rural areas, especially in assisting the rural population to have access to low interest rate loans has now included Tourism in its range of products that will be made available to the rural population.

National Development Bank, understands the importance of tourism and changes it can bring to our rural communities. Having realized the potential in tourism, the bank in agreement with the PNG Tourism Promotion Authority, will now work in partnership in tapping into a resource that can bring in millions of Kina through foreign exchange.

The Tourism Promotion Authority Credit Scheme, is therefore being established to assist Small to Medium Scale entrepreneurs in the tourism industry. The National Development Bank under this Credit Scheme will provide loans for start up of new Tourism Businesses or improve and expand the existing business to the next level.

To start the scheme NDB and TPA have pledged to commit K1. million each for lending. In each subsequent year, each party will also contribute at least K250, 000.00 each to expand the scheme. In order to assist entrepreneurs in the Tourism sector, a subsidized interest rate of 10% per annum will apply. The loan amount will range from a minimum of K1,000.00 to a maximum of K100,000.00 and will be repaid over a period of 6 months to 7 years depending on the loan amount.

This is a step in the right direction for NDB and TPA to work together in using their existing facilities and resources to bring in financial, technical and management experts, which will help the small tourism projects which otherwise have missed out. Tourism expansion will also improve the socio-economic life style within the tourism sector and the rural community where the projects will be based as it provides income-generating prospects for everyone in the community.

National Development Bank, known as the Haus Moni belong yumi, is prepared to assist the bulk of our population in the rural areas. This joint initiative with Tourism Promotion Authority on the Tourism Credit Scheme is a worthy project and encourages Papua New Guineans from rural parts of the country to make use of the opportunity to make a prosperous and sustainable living.