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| "The maximum amount is J$5 million (US$60,240) per entity or group and the interest rate is 7.875 per cent to the final borrower and that is fixed for the life of the loan," explained Account Executive at the DBJ, Ernesto Wignall.(File photo) | |
KINGSTON, Jamaica, January 8, 2009 - The Development Bank of Jamaica (DBJ) is offering a J$250 million (US$3 million) line of credit aimed at supporting farming activities and retooling efforts in the agricultural sector.
The Modernisation of Agriculture and Agro-Processing loan facility is open to small and medium-enterprise farmers, agro-processors, marketers of agricultural products, exporters, fisher folk, and fish and ornamental fish farmers, and is available through approved financial institutions, comprising all commercial and merchant banks, credit unions, people's co-operative banks, Jamaica Money Market Brokers, and Jamaica National Building Society.
"The maximum amount is J$5 million (US$60,240) per entity or group and the interest rate is 7.875 per cent to the final borrower and that is fixed for the life of the loan," explained Account Executive at the DBJ, Ernesto Wignall.
The repayment period is up to seven years and there is a maximum 18-month moratorium on the principal payment. "All of that, of course, will be determined by cash flow of the business," Mr Wignall noted.
For farmers who wish to benefit from the loan, Mr Wignall explained that they are required to take their project proposal to any authorised financial institutions.
"Once they go in, the financial institutions will look at their proposal, and once it is feasible and it appears viable, then it will go through their approval process and then it comes to us for funding," he said, adding that it would be helpful if the agriculture enterprises are registered with the Rural Agricultural Development Authority (RADA) or the Ministry of Agriculture.
The Agricultural Credit Bank of Jamaica Limited and the National Development Bank of Jamaica Limited were merged in April 2000 to create the DBJ.
The bank's mission is to assist in the development and modernisation of all viable enterprises in the agriculture, agro-industrial, services, manufacturing and tourism sectors of the economy.
A release from the Jamaica Information Service said that in fulfilling this mandate, the bank provides medium and long-term funding in a timely and efficient manner and at attractive interest rates, through its network of approved financial institutions, which include commercial and merchant banks, and people's co-operative banks.
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