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Government has $250 million to lend
Denise Reid, Hospitality Jamaica Writer
The Government has $250 million in funds to lend to farmers at
a rate of seven per cent, said Agriculture Minister Dr Chris Tufton
in an interview with Hospitality Jamaica.
The funds have been made available by the Development Bank of Jamaica
(DBJ) and is accessible through the People's Cooperative banks,
credit unions and other micro-financing institutions, he said.
The initiative comes at a time, he said, when the Government has
augmented its interest in assisting in the development and modernisation
of agriculture, the agro-industrial and tourism sectors. "The
prime minister announced a further $1 billion for small business
developments and agriculture at a slightly higher interest rate
of 10 to 12 per cent," said Minister Tufton.
business plans
Giving a brief explanation of the process through which farmers
may access these loans, Neville Lindo, loan officer at the Development
Bank of Jamaica, explained that in order to get the monies, individuals
need to furnish their local commercial banks, credit unions and
people's co-operative banks with business plans.
These business plans, he said, must detail a marketing plan, how
many acres the farmer expects to utilise. He further went on to
say that the Development Bank of Jamaica would fund 70 per cent
of the cost of the project, while the borrower is expected to come
up with 30 per cent.
In a budget presentation earlier this year, Minister Tufton spoke
of various measures being undertaken by the Government to add momentum
to the agricultural sector.
Among these, he spoke of an initiative by the Planning Institute
of Jamaica, which is currently working with the Caribbean Development
Bank to access $8 million at two per cent, with a 30-year payback
period and moratorium of 10 years.
When this plan materialises, it is expected that the funds will
be channelled through the DBJ for technology-driven programmes,
including agro-processing.
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