DBJ Seeks US$25 Million Loan for Caribbean Development Bank

The Development Bank of Jamaica (DBJ) is seeking a US$25 million loan from the Caribbean Development Bank (CDB) to provide financing for tourism and export-related projects.
State Minister for Finance and Planning, Fitz Jackson, tabled a Ministry Paper in the House yesterday (Nov. 23), seeking approval for government to guarantee the loan.
The money will provide resources to the DBJ for on lending to approved financial institutions, which will in turn lend to companies that are mainly engaged in tourism-related or industrial activities and are net foreign exchange earners or savers. This is in keeping with the government’s strategy to strengthen foreign exchange earnings and facilitate long-term employment activities in Jamaica.
The principal of the loan is to be repaid in 60 consecutive quarterly installments, with loan term payment of 18 years inclusive of a three-year grace period and a 5.5 per cent interest rate, which is payable quarterly along with the principal installments.
The House will be asked to grant the approval at its next sitting.