The House of Representatives has approved a $600 million loan guarantee to the Development Bank of Jamaica (DBJ) from the Bank of Nova Scotia for on-lending to businesses in the tourism and agriculture sectors at concessionary rates.

Of the amount set aside, $350 million will go to the tourism sector while the agriculture sector will receive $250 million.

As part of the arrangement, the DBJ will provide loans to the People's Cooperative Banks (PC) at a rate of five per cent per annum, while farmers will access loans at a similar rate.

The ceiling for loans to farmers is $5 million with a minimum of $100,000.

In terms of the tourism sector, the DBJ will on-lend to businesses at a rate of eight per cent per annum, with a maximum of $15 million and a minimum of $2 million.

Opposition spokesman on finance, Audley Shaw, while commending the initiative as a step in the right direction, chided the Government for waiting too long to facilitate the process.

The Government had provided a subsidy to break a deadlock between the BNS and the DBJ on the rates to be offered to the end users.