EXIM to lower rate - Business - JamaicaObserver.com: "The National Export Import Bank of Jamaica Limited (EXIM Bank) will be lowering its Jamaican-dollar loan rates by 0.5 percentage points and its US dollar by one percentage point for the 2016/17 fiscal year as part of plans to remain a competitive and viable lending institution.
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.”
'via Blog this'
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.”
“Given the importance of interest rates as a factor in improving access to financing, the bank will continue to seek funding which allows it to offer competitive rates to its clients, particularly those SMEs in emerging sectors which hold the potential for stimulating economic growth,” she continued.
Six years ago, the bank dropped its lending rates to between 10 and 11.5 per cent for Jamaican-dollar loans, and 7.5 to nine per cent for US-dollars loans. Before that, the EXIM Bank kept the rate consistently at 12 per cent, in comparison to the average 30 per cent lending rate at the time.
More recently, the bank appointed a six-member board of directors that met last week to explore strategies that will offer robust support of the small and medium-sized (SME) business sector. The new board has since committed to doing its part in stimulating growth in the Jamaican economy.
While speaking to management and staff at the bank’s Hope Road offices, chairman of the board, Gary ‘Butch’ Hendrickson, stated that, “EXIM Bank is perfectly poised to reassert its relevance to Jamaicans, and specifically to the SME sector. Our support of this sector through skilfully crafted and relevant products and services is critical in fostering job creation, increasing foreign exchange earnings, and ultimately positioning Jamaica as the net exporter we know it can be.”
In support of the chairman’s statements, Bell outlined some upcoming initiatives by EXIM to target SMEs, including new products for emerging business sectors, an intensive programme with businesses in western Jamaica, and targeted business advisory services, including workshops to help SMEs become more competitive.
'via Blog this'
No comments:
Post a Comment