WASHINGTON, January 30, 2017- The World Bank Board of Executive Directors today approved a US$15 million loan to improve access to finance for micro, small, and medium enterprises in Jamaica.
Access to finance is one of the main bottlenecks for firms, and small and medium businesses play a key role for growth and employment, accounting for 90 percent of the country’s jobs.
“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,” said Galina Sotirova, World Bank Country Manager for Jamaica.
The “Access to Finance for Micro, Small and Medium Enterprises” project will strengthen the capacity of the Development Bank of Jamaica for leveraging private sector financing for small companies.
Specifically, more than 1,000 partial credit guarantees will be provided for loans to Small and Medium Enterprises (SMEs) through an improved Credit Enhancement Facility. In addition, an SME Fund will mobilize ten million dollars in private financing and provide capital financing for these companies.
The project will also help create the right ecosystem for access to finance and business development services for SMEs, facilitate better risk management systems, and increase productivity and competitiveness.
The US$15 million World Bank loan has a 30-year maturity period, and a 5-year grace period.
Last Updated: Jan 29, 2018