Gov’t to Guarantee $425 Million Loan Facility for JUTC

Cabinet has approved a Government guarantee to secure a $425 million loan facility from the Bank of Nova Scotia, to restructure the current debt obligations of the Jamaica Urban Transit Company Limited (JUTC).
In an brief provided by Minister of Information, Culture, Youth and Sports Minister, Olivia Grange, during last week’s post-Cabinet media briefing at Jamaica House, it was noted that notwithstanding support already received from the Government, the state-run bus company continued to “grapple with cash flow shortfalls”, and was unable to meet its debt obligations to RBTT Jamaica Limited, and the Petrocaribe Development Fund, among others.
Additionally, the brief noted that the JUTC is operating on an overdraft facility of $520 million at the National Commercial Bank, which expires this month.
Consequent on discussions, which the brief stated the JUTC had with the Ministry of Finance and the Public Service, the bus company solicited financial proposals, with a view to restructure/refinance these facilities to ease the demands on its cash flow for debt servicing, and reduce the need for financial support from the Government or the Finance Ministry.