JIS News

A loan from the Development Bank of Jamaica (DBJ) to the Banana Export Company (BECO) Limited will be finalised soon, Prime Minister Bruce Golding announced in the House of Representatives.
The Prime Minister pointed out that the security documentation, that is, the assignment of loan proceeds, promissory note and letter of commitment were already in place.
“A letter of commitment is being prepared by City Bank for the creation of a retained earnings account into which will be deposited US75 cents for every box of banana shipped. This will be used to fund BECO’s repayment of the loan by way of regular credits to the DBJ/City Bank account,” Mr. Golding informed.
He said that the tenure of the loan is five years, inclusive of a 12-month moratorium on the principal repayment. “nterest rate will be at seven per cent per annum and the disbursement schedule is to be agreed on between the parties. The collateral provided is the letter of commitment for US75 cents on every box of banana which is shipped from Jamaica, which is to be credited to the DBJ’s account,” the Prime Minister added.
Mr. Golding informed the House that a copy of the loan agreement would be tabled in Parliament.

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