Inter-American Development Bank In Awe Of What Jamaica Has Achieved Since 2013 In The Area Of Fiscal Consolidation – Katzman
The Inter-American Development Bank (IDB) is in awe of what Jamaica has achieved since 2013 in the area of fiscal consolidation, this according to IDB Executive Vice President Julie Katzman, implying that the global bond markets also agreed.
Commenting further the IDB Executive added that after Jamaica’s most recent 5 per cent Eurobond offering last month, Jamaica’s 10-year bond was now trading around 4.5 per cent.
The comments were made during her signing of a J$2.56-billion (US$20-million) IDB loan agreement formalising additional funding support for the Jamaican Government’s Credit Enhancement Facility (CEF) for micro, small and medium-sized enterprises (MSMEs).
The provision has increased the CEF’s funds, which are managed by the Development Bank of Jamaica (DBJ), to $3.01 billion, up from some $450 million.
This now enables the DBJ to provide partial guarantees to affiliated Approved Financial Institutions (AFIs) to cover up to 90 per cent of the sum on individual MSME loans not exceeding $49.3 million, for up to 10 years
She described the challenge now as, how to help SMEs who have difficulty in accessing quality finance, meaning borrowing for multiple years at affordable rates. BM