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JAMAICA-FINANCE-Minister wants closer collaboration between two major financial institutions.

The Jamaica government is urging closer collaboration between the Development Bank of Jamaica (DBJ) and EXIM Bank Jamaica, in order to maximise funding resources available for on-lending to micro, small and medium-sized enterprises (MSMEs).

'If you look at the portfolio of the DBJ, I think that the larger sums that are on lend from the DBJ tend to go to larger businesses, and I want to see a greater distribution of some of those resources going to our small and medium-sized enterprises,' said Industry, Commerce, Agriculture and Fisheries Minister, Audley Shaw,

Shaw told the EXIM Bank's annual strategic planning retreat, that he would be discussing the proposal with Finance and Public Service Minister, Dr. Nigel Clarke, who has portfolio responsibility for the DBJ.

'The endgame is more growth, more jobs, and targeting the export market in a very deliberate way,' he added.

Loans from the EXIM Bank to the productive sector are projected to increase to J$9.3 billion (One Jamaica dollar=US$0.008 cents) for this fiscal year.

Meanwhile, Shaw has said the first report on funds in dormant accounts 'is on his desk' and will be shared with the Finance Minister and the Cabinet.

'Dormant funds in our commercial banking system are something that has to be looked at. The global standard for dormant funds returning to central government is seven years. In the United States it is five years, and in Jamaica it's 15 years.

'The objective is, if we bring the dormant funds period at least down to the world standard of seven years, billions of dollars will be made available, which in my view should be put into a special account and made available to our small and medium enterprises,' he added.

Shaw said that the EXIM Bank will be one of the avenues through which the funds will be made available to MSMEs.

The EXIM Bank is Jamaica's premier trade financing institution and the Caribbean's first Export-Import Bank. It plays a fundamental role in national development by providing a wide range of financing instruments at competitive interest rates for the country's productive sector.

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Publication:CANA News
Geographic Code:5JAMA
Date:Sep 10, 2019
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