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Over the past year, the Development Bank of Jamaica’s (DBJ) Credit Enhancement Facility (CEF) has issued 383 loan guarantees worth $4.85 billion to help micro, small and medium-sized enterprises expand their operations.
CEF General Manager David Wan revealed this at the CEF Superstar Awards Ceremony held at the Courtyard Marriott in Kingston on Wednesday (August 14).
To significantly increase access to credit for MSMEs, the CEF provides funding to approved financial institutions (AFIs) and microfinance institutions (MFIs) and provides additional collateral guarantees for loans extended to MSME operators.
This collateral guarantee helps mitigate risks for financial regulators and MFIs, enabling them to extend credit to a wider range of MSMEs, thereby promoting business growth and economic development in the country.
Mr Wan said the total amount of guarantees has increased significantly from $1.98 billion in March 2021 to $5.5 billion in March 2024.
“We are already seeing this support translate into tangible results, with the number of guaranteed loans increasing from 458 in 2021 to 1,092 in 2024. These numbers are more than just statistics; they represent real businesses, real jobs, and real stories of perseverance and growth,” he noted.
In the 2023/2024 fiscal year, the Bank of Japan issued more than 6,000 loans worth $10.74 billion and received $31 billion in investments.
These efforts not only stimulated economic activity but also created more than 700 potential new jobs while retaining nearly 9,000 existing jobs.
Over the past year, CEF has been able to provide larger loan guarantees of up to $50 million.
The expansion enables the organization to provide support to more MSMEs, helping them to scale up and reach their full potential.
Meanwhile, at the CEF Superstar Awards, participating financial institutions and individual commercial bankers were recognised for their outstanding contribution in enabling MSMEs to access loans through CEF.
National Commercial Bank (NCB) swept a number of individual awards, with Tolcia Barnes of the Mandeville branch winning first place, Stacy-Ann Harrison-Hyde of the Linstead branch winning second place, and Davia Neale-Forrest of the St Ann’s Bay branch winning third place.
In the Financial Institutions Award, NCB Bank won the first position, Sagicor Bank came second and First Global Bank was third.
An award was also presented to Lasco Financial Group, which was named the top microfinance institution of the year.
Mr. Wan said that the CEF Superstar Event is more than just an award ceremony.
“This is a recognition of the hard work and commitment that each of you has put in to help micro, small and medium enterprises (MSMEs) access credit. These enterprises are the pulse of our economy and your efforts keep that pulse strong,” he noted.
In his speech, the Honourable Floyd Green, Minister of Agriculture, Fisheries and Mines, said: “I want to commend the DBJ for pioneering a solution through its Credit Enhancement Facility. What I like about the CEF is that it reduces the risks usually associated with lending to MSMEs and provides an opportunity to qualifying MSMEs that have a viable plan to obtain a term loan.”
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