JIS News

As set out in the 2005/06 annual report of the National Export Import (Ex-Im) Bank of Jamaica, there was a 25 per cent growth in the bank’s loan portfolio for this period, with disbursements exceeding $3 billion.
“This was largely achieved through its short term discounting line of credit and its medium term facilities. During the year, the bank was successful in the implementation of specific initiatives which were embodied in its three-year strategic plan,” the report stated.
The initiatives implemented by the bank included, modification and enhancement of existing product offerings; introduction of new loan products for the tourism and bauxite sectors; establishment of a market research unit; provision of relevant training and development for staff; and upgrading of the Bank’s information, communication and technology facilities.
The document, which was tabled in the House of Representatives yesterday, (Oct. 24) by Minister of Finance and Planning, Dr. Omar Davies, further outlined that “implementation of these initiatives resulted in an expansion and diversification of the bank’s client base, in particular those engaged in the export of non-traditional goods and services”.
During the review period disbursements to the tourism and bauxite sectors totaled $72.5 million. In addition, the bank introduced a General Trade Line Facility for the financing of goods and service which would not normally qualify for financing under its existing product offering.
“The facility largely involve support services for critical sectors of the economy namely health, education and transportation, and loans are available in both local and foreign currency at interest rates of 16 percent and 12 percent respectively,” the report stated.
It further said that the entity is “scheduled to receive incremental flows of funds valued at $150 million as a result of successful negotiations with the Bank of Jamaica for the handing over of an investment portfolio which it has managed. This will increase Ex-Im pool of loanable funds available for disbursement during the 2006/07 financial year”.
As of March 31, 2006 the bank reported net profit of $89.38 million, representing an increase of $7.51 million or 9.2 percent over the 2004/05 fiscal period. This was attributed to a $19.71 million increase in revenues.
According to the report, “the bank’s overall performance was commendable as it achieved most of its operational targets and recorded improved results by implementing some key strategic initiatives during the 2005/06 financial year. This was evidenced by the record breaking improvements in the total loans disbursed as well as increases in the asset base and net profitability”.