JMA Online News
US$10m 'ease the credit crunch' window for businesses
Written by: Dionne Rose, Gleaner
Date: 2008-10-31
JMA president Omar Azan
Jamaican manufacturers said Wednesday that a US$10 million financing window opened for businesses was a welcome ease on tightened credit.
JMA president Omar Azan also said that the loan terms were attractive.
The Ex-Im Bank is offering Libor-based loans priced at a 1.25 per cent premium on the going rate, which is now about 4.5 per cent.
Jamaican businesses are expected to acquire the funds at rates no higher than 10 per cent.
Best rates
Disbursements are expected in the next two weeks. The funds can be used for goods and raw material purchases within the United States.
"It is a great relief with the tightening of credit overseas with manufacturers," Azan told The Financial Gleaner.
But he said he would go so far to say they were the best rates, noting that his members were always cognisant of overseas competitors who have access to cheaper credit.
The Jamaican lending agency said it acquired the funds from Sovereign Bank in Maryland, United States for on-lending on the basis of the strength of its balance sheet.
The transaction required no government guarantee.
Sponsored in part by the Jamaica Public Service Company Limited (JPSCo).