The Jamaican lending rates now stands at 10 to 11 per cent, down from 11.5 per cent; while the US rates are down to between6.5 per cent and 9 per cent, from the initial 7.5 per cent.
According to the Estimates of Revenue and Expenditure for the year ending March 2017, EXIM Bank noted that as a result the repayment of maturing bonds in February 2016 under the National Debt Exchange (NDX), there has been a surge in liquidity and hence the availability of funds for loans to producers and consumers at affordable rates.
“Accordingly, in order to remain competitive and viable, the bank plans to reposition itself by adjusting its interest rates for 2016/17. The bank will also seek to refine its strategic initiatives aimed, inter alia, at expanding its customer base and growing the export sector,” the report stated."
In an emailed response to Jamaica Observer queries about the percentage reduction in interest rates, EXIM Bank manager, trade financing and risk management, Lisa Bell, stated that, “The bank acknowledges the improvements in the overall environment, including a general reduction in rates compared to last year this time.”
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