Jun 2008 Financial News

FirstCaribbean opens new branch

Jun 23, 2008

Finance Minister Audley Shaw yesterday officially opened FirstCaribbean International Bank's Liguanea branch and used the occasion to urge commercial banks to help spearhead a return to large-scale investment in the productive sector.

"Our country is desperately in need of a fundamental return to investment in the productive sector," said Shaw. "This year over last year we have seen pretty buoyant growth in commercial lending. But the truth is, a lot of that lending has been for consumer spending, and enough of that lending is not in the productive sector, investment in plants, in machinery in the resort sector. Not enough money is being ploughed into that area."

Listing food and energy security as two of the Government's priorities, Shaw urged that commercial entities seek to create products that encourage investment in these areas.

"There are funds available now through various initiatives, the European Investment Bank is offering funds which can flow through the local commercial banking system," he said. "They are offering funds for investment in renewable energy [with] a three per cent investment subsidy on those that would normally be six or seven per cent.

"Are we going to step up to the plate and say to Jamaicans who want to invest in renewable energy to take on that three per cent subsidy? Banks can add their spread of maybe two or three per cent and lend money for investment at six per cent for investment in renewable energy," he added.

The Liguanea branch, FirstCaribbean International's 13th in the island, is situated at 129 Old Hope Road.

Managing director of FirstCaribbean International (Jamaica) Milton Brady announced that in coming months another FirstCaribbean branch will be opened in Portmore, St Catherine.

Jamaica Observer
Website: http://www.jamaicaobserver.com/news/html/20080622T230000-0500_137024_OBS_FIRSTCARIBBEAN_OPENS_NEW_BRANCH.asp
June 23, 2008