THE EDITOR, Madam:
I NOTE with tremendous delight that the commercial banks have bought into government's proposal the using of funds made available by the phased reduction in the cash reserve ratios to buy into development bonds that will be used to fund the productive sector.
Under this new facility a total of $1.4B will be available for onlending by NDB and EXIM to the productive sector at 9.5 per cent. As immediate past president of the Small Business Association of Jamaica and a business person myself, I have long been convinced that the drive for increased production demands an appropriate financing regime to make it possible.
It is this conviction that has made me make a similar recommendation regarding funds that should be earmarked for the productive sector especially for meeting its working capital needs.
The Minister of Finance and the commercial banks should be congratulated for showing some sensitivity to the demands of the productive sector. Additionally this arrangement shows what is possible when we work at devising creative solutions to our problems. It is this approach that will put the economy back on the growth path.
I am, etc.,
CHERYL PHILLIPS
3 Hellshire Avenue
Kingston 10
