Minister of Industry, Investment and Commerce, Senator Aubyn Hill, is again urging banks to lower their interest rates on loans.

He notes that while the Bank of Jamaica (BOJ) policy rate has been reduced about four times between August and December, “[the] banks have not followed yet”.

“We want our banks to be profitable. When you have a growing economy, banks benefit most [as] there are more transactions being done. [But] in order to have a growing economy, you must have reasonable and reasonably low interest rates. When the Central Bank has been cutting its lending rate, we need to see the banks move in that direction,” he maintained.

The BOJ announced last week that its policy rate will be maintained at six per cent per annum.

The minister was speaking during Monday’s signing ceremony for a Memorandum of Understanding (MOU) between the Caribbean Export Development Agency (CEDA) and the Development Bank of Jamaica (DBJ) for the launch of a corporate venturing programme.

The signing was hosted at the offices of the Inter-American Development Bank (IDB) in Kingston.

Senator Hill said the Government recognises the importance of micro, small and medium-sized enterprises (MSMEs) to Jamaica’s economy, and is also seized of the challenges stakeholders experience in accessing affordable financing.

“MSMEs are the backbone of Jamaica’s economy. MSMEs account for 97 per cent of Jamaican businesses. The MSME group employs 80 per cent of our workforce… and they contribute 44 per cent of GDP [gross domestic product].

“MSMEs are the heartbeat of our economy. Strengthening them strengthens Jamaica. We must strengthen them. Yet, challenges remain, particularly in accessing affordable financing, which is what BIGEE (Boosting Innovation, Growth and Entrepreneurship Ecosystems) does… and DBJ and [others],” he said.

BIGEE is a Government of Jamaica project, funded by the IDB and executed by the (DBJ). It aims to promote sustainable and robust growth among startups and MSMEs in Jamaica.

The partnership between the CEDA and DBJ will facilitate the introduction of a grant-funding initiative aimed at driving corporate venturing and entrepreneurial innovation.

The initiative will provide financing for local tech entrepreneurs and innovators who have secured a partnership with corporate entities to solve challenges.

The DBJ will provide grant funding to the tech entrepreneurs and innovators of up to US$75,000, upon establishment of a partnership.