WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-09-21 Time: 16:00:01 Posted By: News Poster
By Desie Heita
Windhoek – The loan book of the Development Bank of Namibia (DBN) has increased – hitting N$721 million – while assets stand at just above the billion-dollar mark.
With these figures, the DBN purely survives on money it lends out, with non-interest income such as space rentals and interest on investments bringing in some dollars.
The bank is now warning that the future challenge “lies in capital adequacy levels in the coming period as a result of the intensive growth experienced over the last couple of years”.
This is more so as “there is tremendous scope for development finance” in the country, with economic and political stability providing an ideal setting for entrepreneurs to explore.
Figures for 2009 could have been more impressive if there was no drop in interest rates – Development Bank of Namibia loan book is directly linked to the prime rates. And the downward movement in interest rates shaved off 30 percent revenue.
Nevertheless, the loan book appreciation represents more than 90 percent from N$375 million during the previous financial year to N$721 million in the financial year just-ended. Retained earnings for the year were at N$220 million.
“Key sectors [that benefited in the past year] include agro-industry, fisheries, infrastructure, manufacturing, services, telecommunication and tourism,” says the Chief Executive Officer of Development Bank of Namibia, David Nuyoma.
The bank estimates that it has helped to create about 5500 jobs through the financing of the projects in the financial year ended December 31, 2009, with 18 percent of those being new jobs.
More than half of the total approved went to the public sector, to projects with national outreach.
In the small and medium enterprises sector, the development bank facilitated implementation of N$560 million worth of contracts through the Bridging Finance Facility. Funding through such facility, says Nuyoma, “is structured to reduce instalment risk through cessions of contract income, which reduces the burden of collateral on clients”.
The bridging finance facility targets clients with limited asset base, enabling them to access finance to implement contracts, through which they can build up tangible security.
Nuyoma says this is exactly what the Minister of Finance, Saara Kuugongelwa-Amadhila, meant when she spoke of collateral in the last budget speech.
Although the bank did experience several challenges – with an impairment standing at 7.4 percent for the year, Nuyoma says this does not mean the bank has written off the debts. There are ongoing efforts to recover the money.
“It is important to remember that our first objective is to finance businesses and initiatives that create employment and prosperity, so they can survive their early teething problems and continue to grow. Closing them or placing further barriers in their way at the first sign of difficulty would defeat the purpose of being a development bank,” explains Nuyoma.
The bank’s gross income for the year came in at N$889 million from N$86.1 million the previous year, while profit went down to N$38 million from N$50 million the previous year. The decline in profit is directly because of the drop in interest rates.
Original Source: 
Original date published: 21 September 2010
Source: http://allafrica.com/stories/201009210816.html?viewall=1