/ 8 May 1997

State might end support for banks that don’t lend to SMEs

THURSDAY, 11.30AM

GOVERNMENT may consider closing its accounts with private-sector banks which show no interest in financing small and medium enterprises, Deputy Trade and Industry Minister Phumzile Mlambo-Ngcuka told Parliament on Wednesday.

We doubt and question the banks’ interest in the transformation and promotion of small and medium-sized businesses. These banks have government accounts from which they derive huge benefits. The general indifferent attitudes of most banks place small and medium-sized businesses in very difficult positions, and the government may be forced to review its relationship with banks to ensure that they assist with the promotion of this sector,” Mlambo-Ngcuka said.

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