Friday, 5 October 2007 9:33 AM

Gov't Introduces New Financial Scheme

The government has announced another of its financial scheme that will ensure rural people have access to financial services for investment and development activities.

Finance Minister, Gordon Darcy Lilo, said introduction of the 'Rural Equity Supplementary Scheme' is part of the government's Bottom-Up Approach.

He said the new scheme will also be made available to the commercial banks.

Mr. Lilo said an official announcement of the scheme will be made once guidelines are drawn, which will be monitored by the Central Bank and the financial institutions.

The scheme, amounted to $5-million, will be made available to banks by November, and will be accessed through loan application at the commercial banks.

The Finance Minister said the initial $5-million will be increased in the future if it is proven successful.

He added that the availing of financial subsidies by the government is part of its on-going program to financing quite a number of development activities in the agriculture, fisheries and forestry and infrastructure by the end of the year.

Mr. Lilo said the government, who is now through the first part of the second year in office "have done very well", doing all necessary preparations in terms of planning and strengthening the country's financial capabilities.

"We've put in place proper policies to safeguard government finances, project our revenues, build a strong fiscal position because only when you have a strong, stable fiscal situation that it will create a good macro economic condition," the Finance Minister said.

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