The government is set to pump approximately $2.5-billion into the economy to help finance Micro, Small, and Medium Enterprises, MSMEs.
That’s according to Finance Minister Audley Shaw, who yesterday signed an agreement with the Inter-American Development Bank, IDB, to provide the funds.
The agreement is called the Credit Enhancement Programme for MSMEs.
He says the funds will be available for a wide range of activities including agriculture, manufacturing and tourism.
Minister Shaw was speaking yesterday at a signing ceremony at his Ministry’s Heroes Circle headquarters, in downtown, Kingston.
Minister Shaw says the programme aims to promote productive investments in MSMEs by enhancing their access to financing. He says although the MSME sector makes up about 80-percent of the economy, it suffers from a lack of access to finance and high interest rates.
He says the government is committed to developing and supporting MSMEs as they form an important component of the country’s economic strategy.
Meanwhile, the Executive Vice President of the IDB, Julie Katzman, says the Credit Enhancement Programme can help to build a strong financial system for Jamaica in the long run.
She says MSMEs all over the world suffer from lack of financing, so, programmes like this will help to build relationships with banks and MSMEs.