Jamaica’s EXIM Bank recently accepted an offer of a US$10.0 million Letter of Credit Facility from Sovereign Bank in the USA.  According to Mrs Pamella McLean CD,  Managing Director of EXIM Bank, “The facility is intended to help ease the liquidity squeeze which local manufacturers are experiencing because of the virtual ‘drying-up’ of overseas suppliers’ credit brought on by current upheavals in global economic and financial conditions.” 

Access to the facility is available by way of Letter of Credit, to Jamaican entities that wish to import raw material, equipment and other productive inputs from the USA.   Upon prior consultation, medium term financing (up to 4 years) may be made available for the purchase of capital equipment.  Separate terms and conditions will apply for medium term loans.  The importation of consumer goods is not eligible through this facility.  All imports must satisfy a minimum of 51% US content. 

The interest rate for short term transactions under the line is 6 month LIBOR (currently at 1.63375%) plus 1.25%, and is set at the date of disbursement.  Letters of Credit are payable at sight and refinanced for a credit period of 180 days.  Letter of Credit fees and EXIM Bank service charge will also apply.  Disbursements are repayable in full at the end of the credit period and borrowers are required to provide security for all disbursements.

Companies wishing to access the Sovereign Bank Line of Credit, must apply directly to EXIM Bank’s Trade Financing and Risk Management Division.   The Bank is located  on the ground floor of the Dorchester building, 11 Oxford Road, Kingston 5.  For further instructions on how to apply for a line of credit please visit www.eximbankja.com. 

EXIM Bank Press Release
January 30, 2009