JAMAICA'S MOST profitable bank, the Bank of Nova Scotia (BNS), yesterday launched a $1 billion fund aimed at assisting with the re-generation of the productive sector.
To this end, the bank will make more competitive loans available to small and medium enterprises.
Preference will be given to firms which place emphasis on exports and job creation.
The fund dubbed, the Scotia Jamaica Production Fund, will see a maximum loan of $22 million for a company wishing to sustain or expand its business and a minimum of $7.5 million. The loans will have a maximum term of seven years, with a two-year moratorium on principal.
Loans will be provided at a concessionary rate of 9.5 per cent.
Scotiabank also took the opportunity yesterday to announce the reduction of its base lending rate from 22.75 per cent to 20.75 per cent effective May 1.
On the reduction of its base rate, William Clarke, BNS's managing director said: "Scotiabank did not increase lending rates when the Central Bank undertook an aberrant spiking of interest rates in March last year. With the exception of credit card interest rates, the actual lending rates across the BNSJ's suite of lending products were below the risk free BoJ one-year Repo rate and the 180 days Treasury Bill rate from March 2003 to August 2003."
