May 2010 Financial News

NCB extends financing to productive sector

May 10, 2010

In a move aimed at signalling its commitment to help spur growth in the nation's productive sector, National Commercial Bank (NCB) has announced that it will extend the tenure of two products which offer loans at only nine per cent to local small and medium enterprises (SMEs).

"Our mission of building a better Jamaica can only be strengthened by helping to create a productive Jamaica and to play our part in creating an environment in which economic development and investment can thrive" said NCB Group managing director Patrick Hylton in a press release on Friday.

NCB's assistant general manager, SME, Bernadette Barrow listens attentively as Minister of State in the Ministry of Agriculture and Fisheries, JC Hutchinson, answers questions from farmers at the launch of NCB F.A.R.M. Loan held in Junction, St Elizabeth in March 2010.

The NCB Nation Builder Credit Line offers companies as much as $15 million in financing with seven years to repay. With the NCB Nation Builder Line, funds will be available to support capital expansion and working capital for start-up companies, businesses owned by women and companies in the agricultural and manufacturing sector. NCB is also offering a moratorium of up to a year on principal payments. The programme was due to have closed on April 30, 2010 and has been extended until June 30.

The NCB F.A.R.M. Loan compliments an initiative from the Ministry of Agriculture to encourage the growth of onions, tomatoes and hot peppers. The loan, which was launched in March of this year, currently offers up to $2 million in financing. Farmers can repay the loans monthly or they can choose to repay the loan after they reap the crops- up to maximum of six months in both cases. NCB recently extended the introductory period where single digit financing is available until June 30, 2010.

Chief Technical Director in the Ministry of Agriculture, Dr Marc Panton recently expressed gratitude for NCB's support of the Ministry's F.AR.M. programme. He pointed to that fact that the Bank allocated $250 million in support of the programme as testament to the fact that the organization sees the value of agriculture.

According to the press release, NCB's SME Unit, headed by Bernadette Barrow, is seeing tremendous interest in the two products and encouraging growth in the overall portfolio. "While we cannot yet begin to properly assess the NCB F.A.R.M. Loan because it is relatively new, we are encouraged by the amount of interest that has been shown in the product by farmers," she said, adding that NCB's support of the SME sector is crucial as it supports job creation and economic growth and stability for the nation.


Source:
Jamaica Observer
Sunday, May 09, 2010

http://www.jamaicaobserver.com/business/NCB-SME-extends-financing