The Jamaica Manufacturers’ Association, JMA, is supporting the call of the Finance Minister, Audley Shaw, for commercial banks to lower their interest rates on loans to micro, small, and medium-sized enterprises, MSME’s.
In a statement yesterday, the JMA says it’s begging the Development Bank of Jamaica, DBJ, to reduce its markup to no more than one percent.
The JMA says other financial institutions should reduce their markups to no more than three percent.
According to the JMA, lower interest rates increases Jamaica’s competitive advantage as it seeks to gain investors.
Minister Shaw made the call for lower interest rates last Wednesday, in announcing an agreement between the Inter-American Development Bank and the government.
The agreement, Credit Enhancement Programme for MSMEs, will see about $2.5-billon become available to borrow for MSMEs.
The JMA says it commends Minister Shaw for leading the charge, and looks forward to these measures being quickly implemented.
Meanwhile, the JMA says it believes the DBJ should make funds available to the manufacturing industry at below five per cent.
According to the JMA this is the arrangement for other key industries.
It says the lower rate is overdue for the manufacturing industry employs just below 80-thousand persons.