PSOJ says super-merger proposal needs impact study
Published:Sunday | December 25, 2011 | 12:00 AM
The Private Sector Organisation of Jamaica (PSOJ) says it has reservations about the suitability of merging JAMPRO with the Development Bank of Jamaica (DBJ) and the National Import-Export Bank of Jamaica (EXIM), arguing that it could weaken the investment promotions agency's focus.
At the same time, PSOJ president Joseph M. Matalon said that while it may be advantageous to merge the two development financing institutions, it should be preceded by a feasibility study to determine the costs and benefits.
The Jamaica Labour Party (JLP), as part of its policy proposals outlined in its manifesto released on Monday, unveiled plans to amalgamate the three agencies to create a mega agency for investment promotion, financing and marketing.
Matalon, responding to Sunday Business queries, noted that the idea was first floated in the JLP's manifesto published for the 2007 general election.
"We questioned then and continue to question the advisability of merging the GOJ's main investment promotion agency with the two development finance institutions (DBJ & EXIM), which have an entirely different core business and mandate, and would be concerned that such a merger might dilute focus."
As part of its financial management, economic development and growth strategy set out in its 2007 manifesto, the JLP had proposed to merge JAMPRO, the DBJ and the EXIM Bank "to become one integrated investment promotion, financing and marketing powerhouse."
It was to be named Jamaica Investment and Development Corporation, with the objective of attracting foreign investment and stimulate local investment.
Matalon said there might be potential benefits in pursuing a merger of DBJ and EXIM, given that "both have a similar focus on providing development financing solutions to the private sector.
"However, we would suggest that any such decision be preceded by a detailed feasibility study that would clearly illustrate the balance of costs and benefits that might accrue," he said.