By Providence Emmanuel
THE National Association of Microfinance Banks (NAMB) Enugu State chapter, weekend, said that micro small and medium enterprises (MSMEs) have developed a phobia for accessing funds from Microfinance Banks (MfBs) due to unstable or unpredictable foreign exchange regime likely to hamper repayment capacity.
Chairman, NAMB, Enugu State chapter, Mrs. Nnenna Ekete, in a statement, urged the government to introduce intervention projects that would help MSMEs businesses get out of their present quagmire by ensuring easy access to funds at a very little and subsidized interest rate via the microfinance institutions.
Ekete who doubles as Managing Director, Umuchinemere Pro-credit Microfinance Bank (UPMFB) bemoaned the economic situation and the lingering unpredictable foreign exchange trend in the country, stressing that it poses a great danger and huge obstacle to growth and sustenance of MSMEs. She called on the federal government to quickly introduce measures that will remove the wedge and allow free growth of micro, small and medium scale businesses.
“MfBs see the forex unpredictable trend as hindering operators of micro and small scale businesses from approaching the microfinance institutions for access to funds to do or sustain their businesses, thus adversely affecting the performance of the MfBs in Nigeria.
“One major negative impact of the economic recession and the unstable or unpredictable foreign exchange regime on MSMEs businesses is such that operators and prospective operators in this sector of the economy hardly approach the banks to access available funds meant for their businesses, out of fear of possible consequences of obtaining credit facilities and not being able to repay. The present economic recession and unpredictable forex trend is hampering the growth and sustenance of MSMEs in the country,” she said.
The post Forex: MSMEs now develop phobia for MfBs loan – NAMB appeared first on Vanguard News.
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