DBJ freezes technical aid for business groups
Published:Wednesday | June 15, 2022 | 12:13 AM
Business development organisations (BDOs) attached to the technical assistance scheme at the Development Bank of Jamaica (DBJ) have until the close of business on Wednesday to give a full account of their involvement in the programme.
A letter over the signature of Hugh Grant, general manager of the Project Management Office, told BDOs that effective immediately, no more vouchers for technical assistance would be approved and that such groups would not be able to accept vouchers on the DBJ platform. The letter was dated June 13, 2022.
The Voucher for Technical Assistance (VTA), established in 2014, is a capacity-building programme that provides grants to assist micro, small, and medium-sized enterprises (MSMEs) in closing management gaps, thereby improving their chances of securing financing at approved financial institutions.
Grant praised BDOs for the role in the success of the programme so far, saying that more than 9,000 vouchers have been issued, impacting over 2,000 MSMEs.
BDOs are being directed “not to engage any new clients or to offer a service under the programme at this time.” They are also instructed to refrain from entering into any new agreements.
VTAs are normally issued for amounts in excess of $250,000.
It is not immediately clear how many vouchers are outstanding or their total value.
The DBJ said the changes come after an internal evaluation process.
At the same time, the bank said that outstanding vouchers “may be redeemable at a later date”.
In thanking the BDOs for their continued assistance to the MSME sector, the DBJ said it would restructure the VTA programme over the next few months.
The DBJ did not immediately answer questions about the length of time of the programme’s suspension, how many BDOs will be affected, why the action was taken with immediate effect, or why the BDOs were singled out for particular attention.