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Linden Enterprise Network borrowers hardly repaying loans

Last Updated on Friday, 22 January 2021, 9:15 by Denis Chabrol

The Linden Enterprise Network (LEN) is not meeting its target and borrowers have not been repaying loans.

The Government’s Department of Public Information quotes Finance Minister Dr. Ashni Singh as saying that as a result, the programme will be reviewed to ensure that it serves the intended purpose.

He says because borrowers have not been repaying monies, the programme is not revolving.

““Over the last few years, we found that it has not been serving the purpose it was intended and it is not generating the results we expected, including, as a result of persons not repaying their loans, the fund is not revolving. The President has instructed us to conduct a review of the programme and to examine how we can resuscitate and revitalise it,” he said, during a recent Cabinet outreach to the mining town.

The state-funded agency which was designed to serve as a revolving fund, has among its objectives the financing of the establishment of businesses, and, by extension, job creation.  It offers loan financing to sectors including construction, logging and vending, and provides financial and business advisory services.

Since its operationalisation, more than 600 persons have benefitted from the programme.

“We are working currently to facilitate major industrial investment in Linden, which is going to happen, but in addition to that, we are looking at ways in which we can promote medium and smaller scale businesses,” he said.

The Minister said the 2021 national budget would also examine ways to revitalise the lending agency.