According to Shiimi, the N$8.1 billion comprises N$5.9 billion as direct support to
businesses, households and cash flow acceleration payments for services rendered to
government, as well as N$2.3 billion of additional support, guaranteed by government
but off the balance sheet of government liabilities to support loan uptake on preferential
terms by businesses and individuals.
To support job retention, continued productive economic activities and the cash flow of
businesses, Shiimi said government will provide a wage subsidy of N$400 million to aid
businesses in keeping employees on board in the travel, tourism, aviation and
construction sectors.
He said government will accelerate repayments of overdue and undisputed VAT refunds
to enhance the cash flow of enterprises paying VAT.
“The total amount of the refunds to be settled within one week of the implementation of
these measures stands about N$3.0 billion,” Shiimi said.
Government will also accelerate payments of overdue and undisputed invoices for goods
and services it received, which stands at N$800 million to boost the cash flow of
enterprises that are suppliers to government.
Furthermore, on the non-agricultural small business loan scheme, Shiimi said
government will guarantee N$500 million concessional rate loan scheme for non-
agricultural small businesses, with funds provided through the Development Bank of
Namibia (DBN).
The loans, he said, will be extended to businesses experiencing or expected to
experience cash-flow pressure as a result of a loss in revenue due to Covid-19.
Government will guarantee a N$200 million loan scheme for farmers and agricultural
businesses by extending a guarantee for such loans to the Agricultural Bank of Namibia
(Agribank).
According to him, the loans will be extended to cashflow-constrained farmers and small
to medium-sized farming businesses that have experienced a significant loss of revenue.
Government will be granting policy relief to borrowers by DBN and Agribank in the form
ofa capital repayment moratorium where a holiday is allowed on the principal amount
for a period of up to six months.
He explained the relief will not exceed two years, based on assessment, recapitalisation
of interest, lengthening of the repayment periods and waiving of penalty provisions.
Similarly, Shiimi said, to provide breathing room for tax-paying cash flow-constrained
businesses in the non-mining sectors, such businesses can borrow an amount equal to
1/12th of their tax payment in the previous tax year, which is to be repaid after one year.
He said the interest rate will be concessional, below prime, on the back of the
government guarantee and capped at N$470 million, adding that applications will be
made via the commercial banks.
Equally, Shiimi said to avoid major retrenchments and business closures, employers,
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