President of the MSME Alliance, Donovan Wignall, says small businesses have been unable to access an adequate amount of loans from commercial banks due to unfavourable terms.
Mr. Wignall was reacting to the latest Bank of Jamaica Credit Report which shows a slow-down in the annual growth of total loans and advances for the June 2014 quarter.
That slowdown comes despite an improvement in liquidity conditions during the quarter.
The total loans made by commercial banks in the June quarter reflected the findings of the BOJ’s Credit Conditions Survey carried out in March.
That survey indicated there would be a reduction in the demand for credit by both businesses and consumers in the June quarter.
But President of the MSME Alliance, Donovan Wignal, says despite an increase in credit availability, small businesses have been unable to access loans due to restrictive terms.
Mr. Wignal says despite the adjustments taking place in the economy banks refuse to re-orient themselves towards making loans accessible to the productive sector.
He says it continues to be easier for individuals to get personal consumer loans and this explains why personal loans continue to be greater than loans to businesses.
Mr. Wignal says access to loans will be important to small businesses if they’re to be able to take advantage of emerging opportunities.
Donovan Wignal, President of the MSME Alliance.