Janet Silvera, Gleaner Writer
KERR-JARRETT - FILE
WESTERN BUREAU:
PRESIDENT OF the Montego Bay Chamber of Commerce and Industry (MBCCI), Mark Kerr-Jarrett says the island's banks must reduce their high interest rates now, thereby stimulating the creation of small and medium size businesses.
"Only through the increase of small and medium size businesses can we fuel employment, because the large companies cannot do it," he argued.
The chamber president was speaking at a reception at Bellfield Estates, St. James, officially welcoming Barita Invest-ments Limited to Montego Bay last week.
He said the bankers must narrow the spread between savings and lending rates, "They must take the lead role and make this sacrifice until their loan volume picks ups. Right now they are choosing margin over volume and the nation is suffering, because we are not getting the new businesses that are necessary to create employment."
Interest rates in Jamaica have been unstable in the last five years and currently stand between 18 and 31 per cent. The base rate for businesses seeking to get a loan is 19.5 per cent, while personal secured loan ranges between 18 and 31 per cent.
LAUDED BARITA INVESTMENTS
Five years ago, the situation was worse as the base interest rate then was over 30 per cent.
Kerr-Jarrett, who took over the presidency of the western city private sector organisation just over a month ago, lauded Barita Investments that he says read the business climate in Montego Bay accurately.
"Montego Bay is poised for take off, so we have to make sure we have the means to make it the business centre of the Caribbean," he commented.
