Scotiabanks productive sector growth fund fully subscribed

Scotiabank has announced a full take up of J$500 million worth of loans under its special productive sector growth fund.

It was the second such offer in four years.

The bank made the funds available to Jamaicas productive sectors at 8.95 per cent per annum. Of that amount, J$50 million as allocated to startups.

The fund was rolled out in April of 2011 and by mid-January 2012 had been fully booked by companies which qualified to access the offer of loans, which ranged from J$2 million to a maximum of J$20 million.

The top two categories of borrowers came from the manufacturing and agricultural sectors. Nine per cent of the borrowers were start ups.

We have been seeing steady demand for business loans which is a reflection of more skilled persons choosing to pursue the entrepreneurial route as well as interest from customers who want to strengthen existing businesses, according to Monique French, Senior Vice-President of Credit Risk Management at Scotiabank.

We therefore designed this fund in order to support the productive enterprises, which play a key role in stimulating employment and generating income for the country through exports, a release quoted her as saying.

Companies that qualified for the loans were private sector businesses with no more than J$500 million in revenue.

They were required to use the funds to acquire new capital equipment for business use, re-engineer production processes, retool business facilities, modernize technology for business use, replant and resuscitate crops in the agricultural sector, and for medium term capital injection.

We are happy about the response to the offer and hope the successful applicants continue to build their financial and governance capabilities, French said.

We maintained our usual application of sound credit standards and our customers were compliant with presenting what was required to allow them to participate in and benefit from this scheme, she added.

business@gleanerjm.com