Maravi

‘Govt won’t adjust ceiling amount for microfinance investment yet’

‘Govt won’t adjust ceiling amount for microfinance investment yet’
Written by Fridah Zinyama
Tuesday, September 29, 2009 4:53:32 PM

FINANCE minister Dr Situmbeko Musokotwane has revealed that the government has no immediate plans to review the minimum paid up capital requirements either upwards or downwards for microfinance institutions.

Responding to a question raised by Chipili member of parliament Davis Chipili who wanted to know when the provisions of the banking and financial services Act which deal with the amount of money to be invested in the micro financing institutions would be reviewed, Dr Musokotwane last week said no reviews would be made as the current required capital was low enough and therefore should serve to encourage more financial institutions to enter the formal financial sector.

“The current minimum paid up capital for deposit taking micro finances stands K250 million while for non-deposit taking is K25 million,” he said.

Dr Situmbeko however said should the need to review the capital requirements arise, this would be conducted as part of the law review exercise under the Financial National Development Plan (FNDP) which was aimed at modernising and harmonising various pieces of financial sector legislation.

“As of 30th June 2009, there were 25 microfinance institutions operating on the market,” said Dr Musokotwane.

There have been concerns from the public that the government should review the paid up minimum capital requirement for microfinance institutions so that more players could enter the sector.

Labels: DAVIS CHIPILI, MICROFINANCE, SITUMBEKO MUSOKOTWANE

posted by MrK @ 3:54 PM