Scotia cuts lending rate

Scotiabank is reducing its base lending rate and introducing another productive sector growth fund as a further means of bolstering economic recovery in Jamaica.

In a media release yesterday, Scotiabank said effective May 1, it will reduce its base lending rate by 100 basis points to 15.75 per cent, down from 16.75 per cent.

Bruce Bowen, Scotiabank Group's president and CEO said, "As one of the country's largest and most successful financial-services groups, we are once again taking the lead in lowering rates and making loans more affordable to our customers."

Base lending rate is a benchmark rate for commercial and small business variable-rate loans.

Scotiabank said in order to underline its commitment to supporting the growth in the economy, the bank is concurrently announcing an additional $500-million productive sector growth loan fund.

concessionary rate

This offer will be made available at a concessionary interest rate of 8.95 per cent, down from the previous 9.95 per cent, to Jamaican businesses in the productive sector to fund projects that will create employment, generate exports or replace imports.

Borrowers within the manufacturing, agriculture, tourism, export and distribution sectors will benefit from the new 8.95 per cent, fixed for up to seven years at a maximum of $20 million.

The fund also includes a special $50-million pool of funding for start-up small businesses, where borrowers with a history of two years or less can access between $2-$5 million under the same terms and conditions.