SME Bank victims should be assisted
The Namibia Chamber of Commerce and Industry has called for urgent assistance from the government and the Bank of Namibia to business depositors at the former SME Bank.
NCCI's CEO Tarah Shaanika on Friday said the organisation was extremely worried about businesses that had banked with the SME Bank.
“The fact that these businesses have their funds that are now trapped in the recently liquidated bank, completely stalls operations,” Shaanika said.
He explained that members who had deposited their revenues in accounts at the bank were now unable to pay suppliers and their employees because they did not have access to their funds.
“The closure of this bank is not of our members' making. Key stakeholders, especially the government and the Bank of Namibia, should make urgent provisions for victims with positive balances to access funding through other financial institutions to support their operations.”
Shaanika stressed that businesses could no longer be allowed to close at a time when there was so much economic hardship and the financial squeeze was already crippling them.
“Every effort must be made to ensure that the impact of the mess created at the SME Bank on the economy in general and business operations in particular is minimised as far as possible,” he said.
The NCCI further called for alternative funding of start-up businesses and SMEs through the Development Bank of Namibia during and after the winding up of the SME Bank.
The High Court on Tuesday made a provisional order for the liquidation of the loss-making bank.
The Legal Assistance Centre said on Thursday that people who had suffered damages as a result of the liquidation of the SME Bank could lay criminal charges with the Namibian Police.
NAMPA
NCCI's CEO Tarah Shaanika on Friday said the organisation was extremely worried about businesses that had banked with the SME Bank.
“The fact that these businesses have their funds that are now trapped in the recently liquidated bank, completely stalls operations,” Shaanika said.
He explained that members who had deposited their revenues in accounts at the bank were now unable to pay suppliers and their employees because they did not have access to their funds.
“The closure of this bank is not of our members' making. Key stakeholders, especially the government and the Bank of Namibia, should make urgent provisions for victims with positive balances to access funding through other financial institutions to support their operations.”
Shaanika stressed that businesses could no longer be allowed to close at a time when there was so much economic hardship and the financial squeeze was already crippling them.
“Every effort must be made to ensure that the impact of the mess created at the SME Bank on the economy in general and business operations in particular is minimised as far as possible,” he said.
The NCCI further called for alternative funding of start-up businesses and SMEs through the Development Bank of Namibia during and after the winding up of the SME Bank.
The High Court on Tuesday made a provisional order for the liquidation of the loss-making bank.
The Legal Assistance Centre said on Thursday that people who had suffered damages as a result of the liquidation of the SME Bank could lay criminal charges with the Namibian Police.
NAMPA
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