World Bank Approved 15 Million USD Loan to Increase Access to Finance for SMEs
Jamaica News, February 7, 2018
Kingston, Jamaica (McKoy’s News) – World Bank Approved 15 Million USD Loan: Executive Directors of the World Bank Board have approved a US$15 million loan to improve access to finance.
Funding is a major obstacle for firms. Moreover, small as well as medium companies are vital to Jamaica’s growth and employment given they generate 90 percent of the country’s jobs.
As emphasized by Galina Sotirova, World Bank Country Manager for Jamaica, “Private sector-led growth is a key priority for the Government of Jamaica. To support this agenda, the project will help diversify and expand financing mechanisms for small businesses to promote entrepreneurship and job creation”.
The “Access to Finance for Micro, Small and Medium Enterprises” project will assist with creating the needed environment for acquiring financial and business development services for SMEs. Also, it will increase productivity and competitiveness as well as enable improved risk management systems in organizations.
Moreover, the project will fortify the capability of the Development Bank of Jamaica to clout private sector funding for small businesses.
In detail, over 1,000 partial credit guarantees will be donated for Small and Medium Enterprises (SMEs) loans through an improved Credit Enhancement Facility. Furthermore, an SME Fund will amass ten million dollars in private financing and make available capital financing for these corporations.
World Bank Approved 15 Million USD Loan: The US$15 million World Bank loan has a 30-year maturity period, and a 5-year grace period.