Loan repayment delinquency has taken a tremendous drop at the National Entrepreneurship Development Company Limited (Nedco). So said Labour Minister Errol McLeod to the media after Nedco board's Christmas luncheon in Chaguanas yesterday.
He said when the Government inherited Nedco from the PNM regime in 2010 the delinquency rate for loans was around 84 per cent. He said the former regime was expending Nedco's monies as if it was "going out of style" and facilitating a kind of slush fund for party hats.
McLeod said since the PP took over he was proud to see the loan delinquency rate had dropped to around three per cent on performing loan portfolios. McLeod said Nedco was going after all persons who failed to pay back monies with litigation where necessary.
He said loan production had gone up by over 1,000 per cent with $30 million in loans granted to entrepreneurs in the last fiscal year. McLeod said that was a good sign since it indicated that more people were getting into business ventures and becoming self–employed or were putting themselves in a position to generate employment.
McLeod said the ability for persons to repay loans was one marker that showed their ventures were proving successful. Damien Lyder, the deputy chairman of Nedco and chairman of the loans and recoveries unity, said since the board came into place more than 1,000 businesses have been funded by Nedco loans which would impact thousands indirectly associated with those taking the loans.
"This fulfills one of the mandates set by the Prime Minister to empower people and alleviate poverty," he said. Ramlochan Ragoonanan, CEO of Nedco, said next year the company planned a widespread marketing campaign to improve its awareness to the general public, specifically young, upcoming and already established entrepreneurs.
He said Nedco planned a rebranding exercise which would be rolled out in phases, beginning with the refurbishment of its Web site.