The Development Bank of Namibia has two broad functions:
To assist borrowers to get loans (application and approval), and
To assist borrowers after they have received loans, receive repayments and manage loan accounts.
The Portfolio Management Department (PMD) provides assistance and management services in seven ways after loan approval.
Managing According to Agreements
If a loan is approved, the PMD receives the contract to which the borrower agrees. PMD manages the borrower’s loan account according to the contract.
Arranging and Managing Documents
Many of the documents needed are submitted during the application process. Additional documents, such as collateral documents, will be requested by PMD. These documents will needed for the loan contract. In the course of the contract, some documents may need to be updated if there is a change in the shareholders, structure of the company or if the loan is restructured If so, PMD will ask for updated documents.
Disbursements (payment of loan amounts)
When the contract is signed, payment of the loan amount can be made. This can be into the account of the company or, sometimes, paid to suppliers in terms of the contract. The PMD is responsible for disbursements
Repayments
The PMD monitors repayments in terms of the contract and manages accounts according to the repayment record.
Monitoring the Financial Health of Businesses
In terms of contracts, borrowers regularly provide management accounts and financial statements. These show the PMD if the business may be in danger. If the PMD recognizes a threat, it suggests proactive measures to preserve the business or improve its security.
Management of Arrears and Bad Debts
If the borrower needs to delay payment or is unable to repay, PMD manages the problem. The Bank tries to be accommodating in these circumstances. PMD may suggest and negotiate with the borrower a loan extension and/ or a repayment holiday (restructuring) to assist the business. Clients can also apply for restructuring.
Client support recommendations
Sometimes a borrower may need / want mentoring or coaching, or knowledge, to strengthen the business. The PMD may recommend assistance by the Bank’s Mentoring and Coaching Unit.