EconomyFinancial Services

NBSSI disburses GHC50 million to support private schools

Most private schools have not been able to generate funds to pay their staff following the closure of schools for the past six months

The National Board for Small-Scale Industries (NBSSI) has started disbursing GHC50 million to private schools that applied for loans under the Coronavirus Alleviation Programme Business Support Scheme (CAP BuSS).

The disbursement is expected to enable about 2,000 private schools to pay the salaries of their teachers and other members of staff.

Kosi Yankey-Ayeh said her office had commenced payment to those private schools which applied for the stimulus package through designated banks.

She said that from 7 September 2020 roughly 2,000 private schools began receiving their share of the GHC750 million CAP BuSS, a fund set up by the government to cushion micro, small and medium-sized enterprises (MSMEs) from the impact of the COVID-19 pandemic.

Keep the lights on

Up to GHC50 million of the special fund is expected to be disbursed to the private schools alone by the end of the programme.

Yankey-Ayeh said beneficiaries that met the rigorous criteria set by the NBSSI would receive up to GHC250,000 each, under the so-called Anidasuo and Adom loan schemes. The loans attract an interest rate of 3%, payable within two years after a moratorium of one year.

“Many schools have been severely affected by the COVID-19 pandemic and require support to keep their lights on and pay staff. This support will contribute to the continued operations of the schools in the interim,” she said.

She said her office was working around the clock and in close collaboration with participating financial institutions (PFIs) to effect disbursements.

“The NBSSI is still in the process of disbursing loans, in collaboration with selected PFIs, to private schools that applied, as well as other eligible applicants. Each of those who passed will receive the funds in due course,” she said.

Hard times

Most private schools have not been able to generate funds to pay their staff following the shutdown of the schools system over the past six months because of the outbreak of the coronavirus disease (COVID-19) pandemic.

The shutdown has caused financial hardship for members of staff in the affected schools. Consequently, the schools appealed to the government for a bailout.

The government set up the CAP BuSS fund with seed capital of GHC600 million and topped this up with GHC150 million.

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