LILONGWE-(MaraviPost)-The National Economic Empowerment Fund (NEEF) has given a 60-day ultimatum to all its debtors to settle their outstanding loans, warning that failure to comply will result in drastic measures.
In a statement released on Wednesday, NEEF reminded its clients that loans are not gifts or free handouts, and must be repaid in accordance with the agreed terms and conditions.
The statement, addressed to all NEEF clients, emphasized that the organization will not hesitate to take stern action against defaulters, including seizure of collateral, to recover the outstanding debts.
NEEF’s move is aimed at recovering millions of Kwacha owed to the institution by individuals and businesses that have failed to service their loans.
According to NEEF, the decision to crack down on defaulters is necessary to ensure the sustainability of the fund and to continue providing financial support to Malawians.
The organization has urged its clients to take advantage of the 60-day amnesty to settle their debts and avoid further action.
NEEF’s warning comes amid concerns about the high level of non-performing loans in the country, which has affected the performance of financial institutions.
The institution’s move is seen as a positive step towards improving loan recovery and promoting a culture of repayment among borrowers.
NEEF has been providing loans to small and medium, and micro-entrepreneurs, and has been working to improve its loan recovery mechanisms to ensure the sustainability of the fund.
The 60-day ultimatum is expected to prompt debtors to take immediate action to settle their loans, and avoid the consequences of defaulting on their obligations.