Financial institutions are now being allowed to pay out dividends to small shareholders.

The Bank of Jamaica, BOJ, says it now has no objection to shareholders owning less than one per cent of a financial company to be paid dividends.

On April 24, the BOJ had announced the suspension of dividend payments by financial institutions. 

BOJ Governor, Richard Byles, said the measure was being taken to ensure that banks had enough cash to return to their depositors, as well as give out loans to those who may need them.

However, some shareholders complained that the action was unfair.

The BOJ now says it doesn’t object to small shareholders being paid their dividends for 2019 or 2020.

According to a statement from the Central Bank, this means over 100-thousand small and medium-sized shareholders would be able to get their payments

That’s about 90-percent of all shareholders in these companies.

The BOJ says payments to other shareholders would still be postponed until circumstances normalize.