Almost $2b for MSMEs
Published:Friday | March 8, 2019 | 12:17 AM
The Holness administration has committed almost $2 billion in the upcoming fiscal year to provide a shot in the arm for the micro, small and medium enterprises (MSMEs).
According to Finance Minister Dr Nigel Clarke, $1.8 billion will be made available in loans to the MSME sector in the 2019-2020 fiscal year, an increase of $350 million, or 140 per cent when compared with the allocation for the current fiscal year.
Clarke said $1 billion would be provided through the Ministry of Economic Growth and Job Creation. Of this amount, he said $600 million is to offer loan guarantees.
Clarke said this would be done through a credit enhancement and loan guarantee fund to MSME entities that do not have the collateral required to access loans.
Approximately $763 million will be allocated to the finance ministry.
“Five hundred million dollars will be specifically reserved for micro businesses … those businesses with sales less than $10 million that are often left out when you set aside funds for MSME,” the minister explained.
Clarke revealed, too, that MSMEs can access credit of up to $263 million between the finance ministry and the Development Bank of Jamaica under the Foundation for Competitiveness and Growth Project.
“This literally represents economic opportunity for all,” Clarke said in the House of Representatives yesterday.