The much anticipated Development Bank of Nigeria, DBN, will
take off next month with $323 million (about N64 billion) capital base.
According to Vanguard, the proposed bank, an initiative of
the past administration, was launched in March 2015 in Abuja but could not take
off due to change in government and it is now ready to start operation from
July 2016.
The DBN is a financial inclusion that will bridge the gap
between the Bank of Industry and other commercial banks that could not satisfy
the funding needs of Micro, Small and Medium Enterprises, MSMEs in the country.
The principal mission of the bank is to increase financial inclusion by
providing access to credit finance.
Also, the DBN will support medium to long-term lending to
the MSMEs, with duration of up to 10 years and a moratorium of up to 18 months.
This would enable borrowers in the sectors have a lengthy period to repay the
loans from DBN unlike the Deposits Money Banks, DMBs.
Also, the Ministry of Finance stated that 20,000
beneficiaries would be given loans during the bank’s first year of operation.
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