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Private sector loans increase – BOJ

Published:Thursday | February 23, 2012 | 8:48 AM

The Bank of Jamaica (BOJ) is reporting that during the final months of last year the private sector borrowed more than it has since the June 2008 quarter.

It said in the December quarter, commercial bank credit to the private sector increased by 6.2 per cent over the previous quarter, with 7.3 per cent of the loans going to businesses.

BOJ Governor, Brian Wynter said this is a reversal of the earlier trend, where increases in personal loans were dominating the marginal growth in credit.

He said the growth in credit was largely to the sectors being projected to record continued expansion for the rest of the fiscal year.

In addition, Wynter said the relatively strong growth in private sector credit reinforces the Bank’s forecast for real Gross Domestic Product (GDP) growth.

The BOJ is projecting growth in the economy in the range of 1.0 to 2.0 per cent for the March 2012 quarter.