ThomasAN AGREEMENT for a US$5 million line of credit was signed yesterday between the OPEC Fund for International Development and the Development Bank of Jamaica (DBJ).
With the aim of boosting private sector growth, the financing will be used for on lending through approved intermediaries, to small and medium scale enterprises (SMEs).
Formed in April 2000 as a result of a merger between the Agricultural Credit Bank of Jamaica and the National Development Bank of Jamaica, DBJ seeks to assist in the development and modernisation of enterprises in the agricultural, agro-industrial, information technology, manufacturing and tourism sectors of the economy. It does this by providing medium-term funding at competitive rates to approved financial institutions, peoples cooperative banks and credit unions, who in turn on-lend to SMEs. Only projects that generate employment and/or are a foreign currency earner or saver will qualify for assistance through the Fund credit line.
The financing represents the Fund's first private sector operations in Jamaica. Development assistance totalling US$50.7 million, however, has previously been directed to the public sector in the form of project loans in the sectors of transportation, energy and education, as well as multi-sectoral, and for balance of payments support. In addition, several grants have been extended in the areas of renewable energy, agricultural research and care for the elderly. In February 2001, an agreement for the encouragement and protection of investment was entered into between the fund and the Government of Jamaica.
Yesterday's signature ceremony took place at the Fund's headquarters in Vienna. The agreement was signed on behalf of the Development Bank of Jamaica Mr. Kingsley Thomas, Managing Director, and Mr. Wayne Whittingham, Senior General Manager/Company Secretary, and by H.E. Dr. Y. Seyyid Abdulai, Director-General of the OPEC Fund.
