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ACHIEVEMENTS - 2009 TO DATE

n Over 600 Guarantees have been issued

n Approx. 570 SMEs have received loans

n Approx. 2,230 new jobs created

n During 2014/15, the CreditEnhancement Facility received an awardfrom the Association of DevelopmentFinancing Institutions in Asia and thePacific (ADFIAP) for its role inaddressing the challenges of MSMEs’access to finance.

TRANSITION TO THE PORTFOLIO SCHEME

We have undertaken an extensiveredesign of the CEF to better supportour lending partners in expanding theirSME loan portfolios. The CEF portfolioscheme allows each lender a pre-approved annual portfolio limit andfacilitate online processing enabling:

n Improved turnaround time

n Increased volume of applications

n Increased guarantee coverage

n Increased coverage ratio

The objectives of the CEF are to:

n Provide an incentive toAFIs to increase SMElending

n Provide loans to qualifiedSMEs for viable projects,by providing additionalsecurity coverage onSME loans

n Allow the AFI to acceptnon-traditional collateral,which it may notnormally accept, andgrant coverage based oncriteria such as theborrower’s character andthe future cash flow ofthe business.

n Reduce the AFI’s riskexposure and capitalnormally associated withproviding credit to SMEs

The DBJ will guarantee loansthat are approved whetherthe funding source is the DBJor an AFI.

PERFORMANCE OF THE CEFSince inception in 2009 to August 31, 2019,the CEF has issued guarantees totaling J$3.32billion allowing approx. 600 SME sub-borrowers toaccess 638 loans totaling J$7.82 billion, for whichthey would not otherwise have qualified.

JOB CREATIONCEF guarantees supported loans which created over 2,200 new jobs, approximately 3,000temporary jobs while maintaining over 5,500existing jobs across various sectors.

SECTORS SUPPORTED

TARGET AUDIENCEn Viable enterprises/projects in

the productive sector,including: manufacturing,information technology,agriculture, agro-processing,business processoutsourcing, transportationand services.

BENEFITS OF THE CEFn Reduces the AFI’s risk

of lending to SMEsn Supplements Available

Collateral n Allows viable SMEs to

access credit forexpansion

QUALIFYING FOR THE CEF n Available to MSMEs n Tax compliantn Project viabilityn Good credit history

Since December 2016, these guarantees havebeen endorsed by the Bank of Jamaica, whichallows deposit-taking institutions to apply a 20%risk weighting on the portion of loans guaranteedby DBJ’s CEF.

DBJ’s Partial Guarantee - The Credit Enhancement Facilityn Launched 2009

n DBJ’s CEF is a partial loan guarantee thathelps micro, small and medium-sizedenterprises (MSMEs) without enoughcollateral to access loans from financialinstitutions.

n The CEF is part of a holistic businessecosystem that the DBJ is building tosupport economic growth anddevelopment in Jamaica.

n Other elements are vouchers for technical assistance, energy audit grants,a venture capital programme, public-private partnerships and privatisation, and loans to MSMEs for start-up and expansion.

n The CEF is channeled through the DBJ’snetworks of Approved FinancialInstitutions (AFIs) & Micro FinanceInstitutions (MFIs).

n Qualified MSMEs are those earningrevenues below J$425 million per annum.

Sector

Agriculture 15%

Agro-processing 27%

Distribution 19%

Manufacturing 12%

Mining &Quarry 1%

Services &Transport 47%

Tourism 4%