CARIBBEAN: Jamaican Government Gets $295 Million Line of Credit from OPEC

Gov't gets $295M line of credit from OPEC
 

Tuesday, August 05, 2003
 
GOVERNMENT has received a US$5-million (J$295M) line of credit agreement from 
the Organisation of Petroleum Exporting Countries (OPEC). The funds are to be 
used for on-lending to approved financial institutions (AFIs) for financing 
small or medium-sized entities in the agriculture, agro-processing, 
manufacturing, mining and quarrying as well as tourism sectors.

Details on the loan were contained in ministry paper number 53/03 laid before 
the House last week.

The funds will assist the Development Bank of Jamaica in fulfilling its 
mandate to mobilise resources to provide affordable loans to the productive 
sector.

Eligible institutions for the loans that must be adequately secured and 
should not exceed US$1 million, include commercial and merchant banks, 
people's co-operative banks and credit unions.

The term of the loan is for seven years, inclusive of a two-year moratorium.

In other financial matters, ministry paper number 52/03 was laid before the 
House detailing activities undertaken under the Financial Administration and 
Audit Act regarding deferred financing facilities for 32 contracts worth 
approximately $11.68 million. The contracts covered road construction and 
rehabilitation; the construction of schools and bridges; and the 
rehabilitation and dredging of major gullies, among other activities, between 
financial year 1997/98 and 2002/2003.

The deferred financing facility was implemented to enable the government to 
finance the development and maintenance of major infrastructural projects in 
the face of limited budgetary resources.



SOURCE: Jamaica Observer