CLARKE
SCOTIABANK HAS launched a $600 million fund aimed at providing loans at concessionary rates ranging from 7.875 per cent to eight per cent to small farmers and small hoteliers to assist the Government's thrust in encouraging growth in the tourism and agricultural sectors.
Prime Minister Portia Simpson Miller announced the fund in her budget presentation in Parlia-ment yesterday.
"Since its 117 years in Jamaica, Scotiabank has always shown an unconditional commit-ment to the develop-ment of this country. Over the years we have implemented special loan facilities at concessionary rates to the productive sector with the objective of assisting with Jamaica's economic development. The most recent being the Scotiabank Jamaica Production Fund that was launched in April 2004 with a fund of $1 billion", says William E. Clarke, President and CEO.
"We are pleased to announce the implementation of another special loan programme to assist the Government's thrust in agriculture and tourism. The details of this programme are as follows:
A $250 million agricul-tural facility will be provided to the Develop-ment Bank of Jamaica (DBJ) for seven years at a rate of 7.625 per cent per annum for on-lending directly through the Peoples Cooperative Banks to assist small farmers. The DBJ will be allowed to add an administrative charge of 0.125 per cent per annum, putting the final cost to the farmers at 7.875 per cent. The maximum loan under this programme will be $5 million with a minimum of $250,000.
For tourism, $350 million will be provided to the DBJ for 7 years at an interest rate of eight per cent per annum for on-lending to support small hotels. As the DBJ does not have the distribution infrastructure, BNSJ will distribute the loans on their behalf to qualified borrowers at eight per cent per annum.
Loans to hoteliers under the facility will be for a maximum of the Jamaican dollar equivalent of US$225,000 or J$15 million, whichever is less. Loans will be specifically focused on up-grading existing facilities to achieve world-class standards, and will require approval by the DBJ.
Loans under the facility will be conditional on the borrowers maintaining all their banking business with BNSJ.
This fund is the fourth such program implemented by Scotiabank since 1998 to assist with the objective of stimulating economic growth and job creation. All these facilities have been fully utilised.
In addition to the above initiatives, in March 2000 the Scotia Jamaica Building Society introduced a special mortgage fund of $100 million at an interest rate of 11.75 per cent for first time homebuyers. And in December 2001 the ScotiaGraduate program was launched with a fund of $650 million to assist in retaining skills in Jamaica by providing mortgage loans to young university graduates at an interest rate of 10.875 per cent per annum, with graduates in the public sector being offered a rate of 9.75 per cent fixed for the life of the loan.
