Jun 2017 Financial News

Jamaica's interest rates highest in the Caribbean

Jun 30, 2017

Bank customers in Jamaica pay a higher rate of interest on loans than any country in the region, according to statistics from the CIA's World Factbook.

In Jamaica, the commerical bank prime lending rate is 16.6 per cent the World Factbook says, making it the 29th highest rate in the world, between the African country of Mauritania at 17 per cent and the Asian country of Laos at 16.5 per cent.

As defined by World Factbook “Commercial bank prime lending rate compares a simple average of annualised interest rates commercial banks charge on new loans, denominated in the national currency, to their most credit-worthy customers.”

Out of 184 nations the highest prime rate in the world is currently Madagascar at 62 per cent, while the lowest is in the European Union at 0.32 per cent.

Jamaica was the highest-rated Caribbean country on the list. Suriname was the next highest Caricom country, ranked at 52 with a rate of 13.6 per cent.

According to the Bank of Jamaica's Quarterly Report for March 2017, Jamaica's average comercial bank lending rates have declined to 14.98 per cent compared to 16.67 per cent in the March 2016 quarter — thanks largely to the entrance of JN Bank as a commercial bank in February. That rate on the existing list would put Jamaica at about 44th position, level with countries like Afganistan and Nicaragua.

Countries with rates even higher than Jamaica include Brazil (47.4 per cent), Syria (32 per cent), Yemen (27 per cent), Venezuela (22.5 per cent), Honduras (20.8 per cent), Zimbabwe (20 per cent), Nigeria (18 per cent) and Ukraine (18.5 per cent).

Meanwhile, Guyana was ranked at 57 with a rate of 13 per cent, Haiti next at 58 with a rate of 12.9 per cent and Belize at 74 with a rate of 10.8 per cent.

Antigua was ranked at 84 with rate of 9.8 per cent, St Vincent at 85 with 9.4 per cent, St Kitts also at 9.4 per cent, Aruba at 93 with a rate of nine per cent, Grenada also at nine per cent, St Lucia at 8.8 per cent and Dominica at 8.6 per cent

Trinidad and Tobago was ranked at 99 with a rate of 8.5 per cent, Barbados was ranked at 104 with a rate of 8.1 per cent, The Bahamas at 125 with a six per cent rate and The Dominican Republic was ranked at 130 with a rate of 5.87 per cent,

Puerto Rico had the lowest rate in the Caribbean, ranked at 156 with a rate of four per cent — just above the United Staes ranked at 159 with a rate of 3.5 per cent, and below the United Kingdom ranked at 146 with a rate of 4.6 per cent. Meanwhile, Canada ranked at 168 with a rate of 2.7 per cent, Germany was at 180 with a rate of 1.7 per cent, and the lowest-rated country was Norway at 183 with a rate of 1.4 per cent.

Source:
BY RICHARD BROWNE
browner@jamaicaobserver.com
Business editor
Jamaica Observer
Friday June 30, 2017

http://www.jamaicaobserver.com/business-report/jamaica-8217-s-interest-rates-highest-in-the-caribbean_103435?profile=1056