Finance Minister Dr Peter Phillips has revealed the terms of the funding obtained from the two big banks that were used to settle a matured €200-million (US$265 million) bond in July.
Phillips said the payment was settled through the use of loan proceeds of US$150 million that were secured from the National Commercial Bank (NCB) and Scotia Group during the month of July and balances held by the Central Government prior to July 2012.
NCB loaned the Government US$100 million while Scotia provided US$50 million. Both loans are issued at a rate of 6.375 per cent and are to be repaid over a period of 18 months.
Phillips also acknowledged that special loans were accessed from the PetroCaribe Development Fund in the amount of US$160 million at the same time. The principal repayment for this loan commences on January 31, 2024.
The interest rate charged for the PetroCaribe loan is 2.5 per cent with a repayment period of 15 years.
Earlier, Financial Secretary Wesley Hughes told The Gleaner that the proceeds of the PetroCaribe loan were sold to the Bank of Jamaica and then credited to the Consolidated Fund.