The Government and the country's three commercial banks have joined together in a loan and subsidy scheme to help promote development projects which would provide services and development in the rural areas.

Known as the Supplementary Equity Scheme (SEF), the scheme has been designed to help provide funding assistance for viable projects that would meet the government's rural development policy.

Under the scheme, the commercial banks and the Government would provide funding for project proposals ranging from $15,000 to $350,000 SBD.

A joint statement from the government and the banks says the banks would provide 60% of the funding for any project eligible under the scheme under normal bank security arrangements.

The borrower would have to provide 20% while the bank would apply to the government for the remaining 20% from a fund administered by the Central Bank and funded by donors including the World Bank, the European Union, and RAMSI.

The scheme was launched last Monday and was effective immediately.