N$200m of SME Bank's loans unpaid

THERE is doubt whether the troubled SME Bank will recover close to N$200 million worth of loans given to companies and individuals in Namibia.

The SME Bank is currently struggling to recover another N$200 million which was invested with South African financial entities last year by the executive that has since been dismissed. Although police Inspector General Sebastian Ndeitunga said investigations into how the N$200 million disappeared from the SME Bank to South Africa is at an advanced stage, the Bank of Namibia said they cannot trace the money. Industrialisation minister Immanuel Ngatjizeko said in parliament last month that the value of the bank's loan book was N$620 million. It now turns out, according to the latest document obtained by The Namibian, that recovering the N$200 million of the N$620 million is in doubt because of non-performing loans. The Bank of Namibia said a transaction becomes a non-performing loan when the borrower fails to pay for 90 days or more. The documents show that as of 31 March 2017, the SME Bank had N$100 million sub-standard loans, N$55 million doubtful loans and N$32 million in loans that were considered lost. According to the documents, 69 individuals and companies benefited from the sub-standard loans worth N$100 million, of which 31 are construction firms.