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New Managing Director - Lisa Simone Bell

awalterallen — Thu, 13 May 2010 18:48:14 -0500

The Chairman and Board of Directors are pleased to announce the appointment of Mrs Lisa Simone Bell as Managing Director of the National Export-Import Bank of Jamaica Limited (EXIM Bank), effective May 3, 2010.

Mrs Bell joins the Bank with over twenty years experience in providing financial, analytical, project and general management expertise in both the private and public sectors. She has held key managerial positions in the financial services sector and within the public sector. Along with her stellar management performance Mrs Bell brings a wealth of knowledge of credit and financial services especially as it relates to SMEs and the Export Sector.

Lisa Bell leaves the Jamaican Trade and Invest (JAMPRO) at the position of Deputy President, after contributing over eight years to the national investment and export agency. Prior to that, she served as Deputy General Manager and General Manager for Alpha Financial Services Limited and Victoria Mutual Investments Limited respectively. Mrs Bell also worked overseas with both Anderson Consulting and the City of Miami Department of Management & Budget ,after completing her formal education. Upon her return to Jamaica, she served as Corporate Credit Manager for CitizensBank Jamaica Limited.

Mrs Bell holds a Master of Business of Administration with a specialization in Finance, and also a Bachelors of Business Administration from the University of Miami, Florida, USA.

EXIM Bank offers Trade Credit Insurance to Exporters

cuferri — Tue, 04 May 2010 07:39:52 -0500

In today's world of change and extreme uncertainty, EXIM Bank Jamaica is providing Jamaican exporters with an appreciable measure of protection against the non-payment of receivables through its unique and affordable priced Trade Credit Insurance products.

According to Ann Marie Walter-Allen, EXIM Bank's Chief Officer, Marketing, Trade Credit Insurance is
an invaluable business tool for exporters looking to avoid the possible financial fallouts that sometimes
come with entering new, faraway markets and establishing a new customer base.

"This innovative product safeguards the money that you are due after you have sold your products. It
provides protection for each shipment in case your buyer takes a long period of time to pay or encounters some unforseen difficulties that will prevent them from paying. This insurance protection can happen for as little as 54 to 60 cents for every $100 dollars of the invoice value of the goods that you ship," stated Walter-Allen.

She explained that exporters would now be able to enjoy peace of mind and confidently extend credit to their clients - a move that often provides a competitive advantage in the face of economic tightening. She added that the product not only covers export goods, but domestic goods and services as well.

An attractive feature of the Trade Credit Insurance outlined by Walter-Allen is the credit check done on the overseas clients of the Jamaican exporters. Through this due diligence exercise, which ultimately determines the level of coverage, EXIM Bank provides vital credit information to exporters that assist in effectively managing their new customers until they develop a good relationship with them. There is also an option to add political risk coverage.

In the event that an exporter's funds are tied up in his or her most recent shipment and there is no collateral available to secure working capital, a Trade Credit Insurance policy can be used as security to acquire a JA$ loan at 12 per cent per annum on the reducing balance, which ranks among the lowest rates available in the country. The loan lasts for 120 days and commercial risk coverage goes up to 85 per cent of the gross invoice value.

Creative Industries - a significant contributor to GDP, Employment & Trade

awalterallen — Wed, 23 Dec 2009 10:10:15 -0600

"A dollar of foreign exchange put into music and other recreation forms yields $6.18,[while] that same daollar put into communications yields [only] $1.49" Dr Vanus James, Senior Research Fellow and Adj. Distinguished Professor, Economics, University of Technology, Jamaica.

At a meeting hosted by the Jamaica Intellectual Property Office (JIPO) and EXIM Bank, Dr Vanus James, presented findings from a WIPO study that supported the premise that Jamaica’s Creative Industry may be Jamaica’s answer to real economic growth. The meeting, which was held on Tuesday, November 17, 2009, at the boardroom of the Ministry of Mining, was chaired by Philippa Davies, Manager, Copyright and Related Rights Directorate of JIPO and Attorney-at-law, and attracted participants from Scotiabank, First Global and UTECH.

In his opening remarks to the financial institutions present, Mr Sydney Bartley, Director of Culture from the Ministry of Education, Youth and Culture, set the stage by noting that Jamaican musicians have penetrated the world with their music; and as intellectual property, has the potential to earn significant foreign exchange for the country.

Key note presenter, Dr Vanus James, Senior Research Fellow and Adj. Distinguished Professor, Economics, UTECH, said the future for economic development in the Caribbean is in the IP intensive sectors, with IP as the domestic capital. He continued that although a sector of our society fails to recognise how creativity makes its contribution to the GDP, his study on the Creative Industry provides empirical evidence in the form of comparative productivity data to support his claim. In a country where foreign exchange is short, Dr James believe that the “key to good policy design is comparative foreign exchange productivity,” where “the rate of return to a dollar of capital expenditure” is measured. This is the “same as the capacity to save foreign exchange through the production system. Dr James’ findings indicate a higher rate of return for activities within the Creative Industry as compared to that of other sectors which traditionally attract high levels of investment, such as telecommunications, mining and transportation. For example, “A dollar of foreign exchange put into music and other recreation forms yields $6.18, [while] that same dollar put into communications yields [only] $1.49.”

Dr. James stated that Jamaica needs to invest in the creative industries as they contribute to country’s tax purse, directly as well as indirectly by way of spin off industry gains and increased employment. Although the spin off industry gains is difficult to measure, the indirect contribution to the economy is worthY of attention.

Furthermore, the copyright sector represents 4.8% of GDP, and 3.03% of employment. Dr James estimates that sport and copyright sectors together contribute 8% of GDP, which is bigger than agriculture. Jamaican reggae legend, Bob Marley, died in 1981 at age 36, yet his music lives on and his international fame continues while earnings from royalties continue to pour into the Marley estate. The spinoff industries have evolved into a gamut of consumables, from ring tones to even snowboards. According to Forbes magazine, Bob Marley’s heirs’ income in 2007 from legal sales was US$4 million. His continuing appeal generates an estimated US$600 million a year in sales of unlicensed wares. Toronto-based Hilco Consumer Capital CEO, Jamie Salter, believes Marley products could be a US$1 billion business in a few years.3 Bob Marley’s copyrights will contribute to his estate until 2031.

According to Dr James “a general lesson from the evidence is that the segments supported by government tend to do substantially better than those that are neglected”. Implying that with heightened attention the Creative Industry can be a significant contributor to GDP and employment. The return on investment (ROI) from the creative arts, music and sports Vanus James reiterated, is an important factor not to be overlooked, and called for a rapid change in government policy and approach. His challenge was that we should work smarter, not harder and encourage investment into areas with the highest yields: high quality art and crafts, music and recreation, fashion, etc. (Please see findings and recommendations by Dr. James in his attached PowerPoint presentation.)

Carol Simpson, Executive Director of JIPO, in her comments stated that JACAP acts as a collection agency for royalties and administers the public performances of artist’s music. (JACAP operates much like its US counterpart, ASCAP.) Jamaican artists registered with ASCAP are paid royalties in US currency and If artists are registered with JACAP, the royalties collected contribute to Jamaica’s GDP. It was noted by the Bankers present, that if royalties are now being successfully measured by JACAP, this may create new opportunities for artists to use this revenue stream as collateral for loan financing.

EXIM Bank has supported the Creative Industries as evidenced by loan financing provided to the Guild of Artists. Mrs Valerie Crawford explained that EXIM Bank, in working with the Jamaica Guild of Artists, reached a new frontier by accepting Intellectual property as collateral for loans. Although still in the exploratory stage, EXIM Bank recognizes the inherent value in the creativity of the Jamaican people, who in many instance have nothing else to offer when trying to access financing.

Vanus James, Ph.D., is a Senior Research Fellow and Adj. Distinguished Professor, Economics, Scotiabank Chair, University of Technology, Jamaica.

December 23, 2009

Lemon Grass As An Investment Opportunity

awalterallen — Wed, 11 Nov 2009 15:52:16 -0600

“YES – we have natural resources that are in demand all over the world. YES – as a people - we are innovative, resilient and ready to do what it takes to get back on our feet. YES – We have Brand Jamaica.” Dr. Audia Barnett, Executive Director of the Scientific Research Council,Jamaica.

Jamaica’s Scientific Research Council (SRC) held an exposition on November 3, 2009, on Lemon Grass as one of several plants indentified with nutraceutical properties. Dr. Audia Barnett, Executive Director of the SRC opened the evening at the Devonshire, Devon House, Kingston, Jamaica, to a packed room representing a wide cross-section of investors – agro-processors, farmers, entrepreneurs and the curious. The event aimed to highlight investment possibilities based on research developments in Lemon Grass. EXIM Bank’s Managing Director, Pamella McLean and members of the Bank’s marketing team were on hand to respond to questions by potential investors on how to access funding for their projects.
In a paper written by Dr. Barnett, and published on the SRC’s website, she explained that “Lemon Grass, otherwise known as Fever grass in Jamaica, occurs locally as two main varieties – the short fluffy variety and the tall willow type. Each has excellent prospects due to the presence of components which are valuable in the food, household and personal products industries. Products on the market range from beverages and cosmetics to insect repellants. It is a hardy, easy-to-grow, versatile grass that proliferates on most soil types and is suited for our ‘sugar lands’. It has been used for centuries in the eastern countries for its soothing, calming and refreshing properties. Claims of its therapeutic value are rife and as such demand internationally is spiraling.”
Investment opportunities were on display at the Expo, in the form of lemon grass shower gels and body lotions both for personal care use at home and for the spa industry. Also on display were a variety of lemon grass teas packaged and ready for distribution. Lemon grass drinks and varieties of lemon grass teas were available for tasting.
In her speech, Dr. Barnett gave a brief review of investment possibilities in Lemon Grass and encouraged those present to invest in Jamaica: “YES – we have natural resources that are in demand all over the world. YES – as a people - we are innovative, resilient and ready to do what it takes to get back on our feet. YES – We have Brand Jamaica.”
EXIM Bank is able to provide financing to companies wishing to invest in Lemon Grass and the production of its derivative value-added products. Financing can be used to purchase equipment, upgrade facilities or for working capital. The current interest rate on local currency loans is 12% p.a. Foreign currency loans are also available for exporters or foreign exchange earners. Potential investors are encouraged to speak with an EXIM Bank Credit Analyst prior to submitting an application, otherwise, interested companies may start their application for an EXIM Bank loan online at www.eximbankja.com
Lemon grass is not yet commercially grown in Jamaica. The oil is used for preparation of aromatherapy products, candles, soaps and insect repellent sprays. Western Europe and North America are the main buyers of lemon grass oil, with North American representing 33% of global demand, and Japan 10%.

Entrance to EXIM Bank , 2 Norwood Avenue, Kingston 5

awalterallen — Tue, 08 Sep 2009 12:28:02 -0500

Customers and visitors to the EXIM Bank are asked to use the entrance on Norwood Avenue, as the Oxford Road Entrance has been blocked. The offices of the Bank remain on the ground floor of the Dorchester Building. Office hours remain 8:30am to 4:30pm, Monday to Friday.

Mahfood Family (Wsynco Group) recognised as Business Leaders by the Jamaica Observer

awalterallen — Mon, 18 May 2009 15:50:37 -0500

"We have invested one billion dollars over the past three years," notes Andrew Mahfood, the Group Finance Director, .... "Most of this money was borrowed from EXIM Bank and the Development Bank of Jamaica," he lets on. "These institutions are the lifeblood of manufacturers. I do not believe they themselves appreciate the crucial role they play in allowing companies like ours to grow and employ workers." The loans are denominated in Jamaican currency at fixed annual interest rates that range from 10 to 12 per cent - an important factor that allows Wisynco to invest with the assurance of predictable monthly debt repayment.
"We would simply not be able to survive without such a facility," says the Finance Director.

Full quote taken from the Jamaica Observer Website, For the full story please click the link below.
http://www.jamaicaobserver.com/businessleader/mahfoods.asp

Information Meeting on Intellectual Property Financing

awalterallen — Fri, 08 May 2009 16:00:15 -0500

"One local pundit in fact estimates that, “the hosting and branding of music and sporting events are far more attractive and could yield more revenues than the marketing of sand sea and sun in this environment” …. These “views are supported by studies conducted by Drs. Michael Witter and Vanos James of the University of the West Indies (UWI) and the University of Technology (UTECH) in Jamaica, respectively, as well as by studies carried out by John McMillan of Stanford University in the United States. All of these studies indicate that the music industry for example, has vast foreign exchange earning, tax generating and employment creating potential. It is for those reasons that the EXIM Bank would wish to see how we can facilitate the unlocking of the value that is inherent in Intellectual property Rights."

A presentation by Megan Deane, Deputy Managing Director, EXIM Bank Jamaica,
at the World Intellectual Property Office (WIPO)
Geneva, Switzerland

[click below for full presentation]

Limestone - The Future of Jamaica's Mining Industry

awalterallen — Tue, 17 Feb 2009 13:22:21 -0600

A Powerpoint presentation by Mr Norman Davis, Director - PowerGen Limited at the National Minerals Week Power Breakfast, held on Tuesday, February 17, 2009 at the Terra Nova Hotel, Kingston, Jamaica.

New US$10 million Line of Credit Facility from Sovereign Bank, USA, to EXIM Bank

awalterallen — Fri, 30 Jan 2009 12:36:01 -0600

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

The Global Economic Crisis & its Implications for Jamaica

awalterallen — Thu, 23 Oct 2008 11:41:51 -0500

A presentation by Dr Wesley Hughes, Dir. General of the PIOJ, to the management of EXIM Bank Oct. 23, 2008. Click here to view Power Point presentation