Cabinet has approved a Government guarantee of US$20.15 million to the Port Authority of Jamaica from the Bank of Nova Scotia, to refinance existing loans.
Making the announcement at the Jamaica House press briefing, at the Office of the Prime Minister, Information Minister, Senator the Hon. Sandrea Falconer, explained that the loan had become necessary as the Authority had been adversely affected by the slow pace of recovery in advanced economies, such as the US and financial challenges in the Eurozone.
This, she said, had affected the expected rebounding of the containerised transsshipment market.
"Cabinet was advised that the Port Authority of Jamaica is taking advantage of the current low interest rates in the domestic market, in order to reduce cash outflows and promote cost containment, improved productivity and operating efficiency," the Minister pointed out.
The funds will be used for scheduled payments due August 2011 to February 2012 on loan facilities which already have government guarantees.