June 10, 2009

Mimiko sets to disburse N1b to SMEs

The new Administration  of Governor Olusegun Mimiko is set to disburse the sum of N1 Billion to small scale industries and cooperative societies in the State.

The fund will be disbursed  through Micro Finance Banks in Ondo State. The Commissioner for Community Development and Cooperative Services, Engineer Clement Faboyede, disclosed that the fund was being provided by the State Government, to effectively tackle the twin problem of poverty and unemployment in the State.

Engineer Faboyede said that the Mimiko’s Administration opted to utilize Micro Finance Banks in the State as its channel for the disbursement of Micro Credits to the active poor, so as to ensure that there is direct access to the funds, by those who deserve such economic empowerment.

The commissioner explained that beneficiaries of the anti-poverty programme, are expected to organize themselves into Commodity Cooperative Groups. Each of the groups he said, will be screened and thereafter certified, to approach the Micro Finance Banks for various amounts of loans, depending on the nature of their businesses and individual capacities, for repayment.

The Micro Finance Banks, he said, will on their part, assist in the judicious disbursement of the loans and monitoring of projects being undertaken by the beneficiaries. They will, in addition undertake a  recovery of the loans , once they have  matured .

Engineer Faboyede reiterated the Mimiko administration’s resolve to minimize unemployment and reduce poverty in the state, through an aggressive pursuit of various economic empowerment initiatives.

Responding on behalf of the Association of Micro Finance Banks, Mr. Sola Oyeneyin, said that members of the association were the closest to the grassroots people, as they were always having financial interaction and intermediation with them, on a daily basis.

He assured the commissioner that the State Government’s partnership with the Micro Finance Banks, will demonstrate to the populace that the government is truly poised to alleviate the economic sufferings of the masses at the grassroots, in the state.