21 Jun 2007

Solomon Islands government small finance scheme welcomed

11:25 am on 21 June 2007

The Solomon Islands rural development volunteers association welcomes that government's plan to offer a small business finance scheme.

The country's government will launch a small business finance scheme on Friday to bolster the economic recovery in rural areas.

The scheme will provide loans for people wanting to start up small businesses in rural areas.

The volunteers association vice chair, Alan Agassi, praises the initiative, but urges caution.

"That is a good initiative. Having said that there needs to be a lot of awareness, a lot of training, on how to best utilise the loan, because the problem that we will have is business operators not being able to repay the loan."

Alan Agassi says marketing skills should also be part of the loan package to overcome this shortfall.