The Institute of Private Enterprise Development (IPED) is reporting that its gross loan portfolio as at December 31st, 2018 grew to $3.008 billion, representing an increase of 7% from $2.806 billion in 2017.

A media release issued by IPED yesterday also said it processed and disbursed 4,091 loans for a value of $2.663 billion in 2018, compared to 4,218 loans for a value of $2.684 billion in 2017.

“This is a decline of 3% and 1% in number and value respectively,” it noted, before adding that the total number of loans outstanding as at December 31st, 2018 declined to 3,938 from 4,064 in 2017.

IPED said 2018 came with its fair share of challenges but vigilance, strategic decision making and innovation has allowed it to emerge with satisfactory results. “IPED continues to be a pillar in the growth and development of the ordinary man and woman in their quest of owning their own businesses,” IPED Chairman Komal Samaroo was quoted by the release as telling the Annual General Meeting.

The overall quality of the loans portfolio has recorded a marginal improvement, the release said, while pointing out that Portfolio at Risk (principal balance of loans in arrears for more than 30 days as percentage of gross loans) was 16.16% in 2018, compared to 18.35% in 2017. Non- performing loans as a percentage of gross loans improved from 10.2% in 2017 to 9.8% in 2018, it added.

According to data obtained from loan applications processed in 2018, micro and small businesses supported by IPED employed approximately 8,627 persons. Additionally, of the total applications processed, loans to female principal borrowers were 33% (2017: 35%), rural borrowers were 93% (2017: 91%), youth borrowers were 5% (2017: 6%) and borrowers without real estate collateral accounted for 72% (2017: 76%).

The release said the financial position of IPED has strengthened over the year and continues to be stable, with total assets growing by 8% to $3.720 billion in 2018 from $3.498 billion at December, 2017. “This is financed by $3.267B (2017: $3.221B) of accumulated funds and surpluses,” it noted.

Meanwhile, total Liabilities increased by 63% to $454 million from $278 million at December 2017. The release explained that during 2018 a loan of $200 million was drawn down from Demerara Bank Limited and $41 million from the Inter-American Development Bank and these were used to fund the growth of the loans portfolio.

Additionally, the release said the financial performance for the year has improved, with a total surplus of $102.5 million for the year, compared to $85.7 million for the year 2017. Further, the total interest income for the year was $539 million, compared to $512 million in 2017, an increase of $27 million or 5%. Total investment and other income was $57 million, compared to $55 million in 2017.

The total expenses for 2018 were calculated at $490 million, compared to $479 million in 2017.

The release said IPED is a not-for-profit organisation but manages its financial affairs to ensure that the institution is sustainable and self-sufficient. All surpluses will be used to enhance our outreach to micro and small businesses in 2019 and thereafter.