As the world’s most powerful industrial nations try to halt the global economic contraction, Jamaica’s EXIM Bank is targeting the use of its Inter-American Development Bank (IDB) Line of credit to ensure that Jamaican businesses that rely heavily on foreign currency are able to continue production.

The US$18 million currently available was approved late last year by the IDB with the support of the Ministry of Finance and the Public Sector for on-lending to the productive sector.

 “We are focused on solutions that will keep businesses up and running and this facility accomplishes just that,” explained Pamella McLean, Managing Director of the Bank . “This is about intelligent strategising with a view to ensuring that we stay on top of the challenges and not become overwhelmed by them.”

Companies in the Jamaican productive sector that export directly or earn foreign exchange are able to access this line of credit where the interest charges are calculated on the reducing balance and are tied to the six month LIBOR rate – which means interest rates may vary after the initial six-month period, but are expected to range between 10 – 11 per cent per annum.

EXIM Bank Jamaica assists potential borrowers to manage their foreign exchange exposure by ensuring that hard currency funds are lent only to those businesses that earn hard currency.  As such, loans will be disbursed in United States dollars (USD) and borrowers must prepare to repay the loan, in full, in USD only.

As is now the norm with Jamaica’s EXIM bank, commitment and processing fees, will also apply.  Import restrictions connected to this line of credit require that suppliers be from member countries of the Inter-American Development Bank.  A list of IDB member countries is shown below.   Loan applications can be made via our website, or in our offices located on the ground floor of The Dorchester Building, 11 Oxford Road, Kingston 5, Jamaica.

Eligible Criteria

• Businesses should be majority Jamaican owned; specifically Jamaican Nationals should own at least 66 2/3 % of the equity. 
  
• Borrowers must be in compliance with applicable environmental laws, and have the necessary environmental permits to operate.
  
• Loan applications from companies operating in the sectors and subsectors listed below, must be accompanied by evidence of approval by Jamaica's environmental impact agency; and/or copies of the environmental licenses, permits for carrying out the respective actitivities:
  • Energy generation: Hydo-electric, thermal or nuclear
    
  • Management or disposal of solid waste
    
  • Mining and materials extraction
    
  • Metals processing
    
  • Leather processing
    
  • Production, storage or transport of chemical products including fertilisers and pesticides
    
  • Charcoal production
    
  • Irrigation and dams
    
  • Construction of tourism infrastructure and recreational facilities
    
• All goods and services financed shall be purchased from IDB member countries
  

Inter-American Development Bank (IDB)

The IDB was founded in 1959 as a partnership between 19 Latin American countries and the United States.  The original member countries were Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela and the United States

IDB Member Countries:

• Argentina
• Austria
• Bahamas
• Barbados
• Belgium
• Belize
• Bolivia
• Brazil
• Canada
• Chile
• China, People's Republic of
• Columbia
• Costa Rica
• Croatia
• Denmark
• Dominican Republic
• Ecuador
• El Salvador
• Finland
• France
• Germany
• Guatemala
• Guyana
• Haiti
• Honduras
• Israel
• Italy
• Jamaica
• Japan
• Korea, Republic of
• Mexico
• Netherlands
• Nicaragua
• Norway
• Panama
• Paraguay
• Peru
• Portugal
• Slovenia
• Spain
• Suriname
• Sweden
• Switzerland
• Trinidad and Tobago
• United Kingdom
• United States Uruguay
• Venezuela