The Bank of Jamaica (BOJ) says Medium, Small and Micro Enterprises, MSMEs, are particularly suffering from the high-interest rates being charged by commercial banks.
BOJ Governor, Bryan Wynter, says MSME’s are being charged interest rates in many cases double the rates being enjoyed by their larger counterparts.
The issue became a topic of discussion during yesterday’s sitting of Parliament’s Public Administration and Appropriations Committee, PAAC.
Central Bank Governor, Bryan Wynter, says the flow of capital to smaller enterprises is a matter of urgent concern for his institution.
He says the Bank is finding a significant gap between the interest rates being charged to large firms and MSMEs.
Governor Wynter argues that while large firms will contribute more substantial amounts to the country’s GDP, empowering MSMEs is the only way to have sustainable growth.
He says it’s important that ways are found to ensure the lower interest rates being offered by the Central Bank trickle down to smaller firms.
Governor Wynter also argues that these firms are usually the source of innovation and diverse revenue streams for a country.
However, Governor Wynter argues that things seem to be trending in the right direction, albeit slowly.