The Lesotho National Development Corporation has signed a Partial Credit Guarantee Risk Sharing Agreement with the Lesotho Postbank. This agreement provides for the sharing of financial risks between LNDC and PostBank for the benefit of the local private sector.
The LNDC Chief Executive Officer, Mr. Kelebone Leisanyane says “the signing of the agreement with the Lesotho Postbank, is a milestone that we should all celebrate as the Basotho nation. It is another step towards strengthening our local private sector. We are proud that LNDC services will now be enjoyed by the majority of the people who were not able to access other banks.”
A similar agreement has already been signed with the three local commercial banks.
Lesotho PostBank comes into play a year after the LNDC Board approved modifications to the policy guidelines of the LNDC Partial Credit Guarantee Scheme to accommodate a wider spectrum of sectors.
The Scheme has been capitalised to the tune of M10 Million and will provide guarantees to the tune of M2.5 million for any type of business deemed legal in Lesotho.