National Economic Reconstruction Fund Act

An Act to establish the National Economic Reconstruction Fund, to correct, inade-

quacies in the provision of medium to long-term financing to small and medium-

scale industrial enterprises, provide medium and long-term credit to commercial

banks for on-lending and for matters connected therewith.

[1989 No. 2.]

[9 th January, 1989]

[Commencement.]

Establishment, aims and objectives of the National Economic Reconstruction Fund

1. Establishment, aims and objectives of the National Economic Reconstruction

Fund

struction Fund (in this Act referred to as “the Fund”).

financing to small and medium-scale industrial enterprises, especially manu-

facturing and agro-allied enterprises and ancillary services;

banks for on-lending to small and medium-scale enterprises for the promotion

and acceleration of productive activities in such enterprises;

grace period of one to three years, depending on the nature of the enterprise or

project;

according to the sources of funds available to the Fund and the requirements of

the eligible enterprise or project.

Eligibility

services, equipment leasing and such other enterprises or projects ancillary thereto shall

be eligible for loans under this Act it~

than land, including the cost or the investment project, does not exceed N to

million; and

materials and other production inputs is at present locally derived or at least

60% shall, by 30 September 1990, be so derived.