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The Ministry of Finance and the Bank of Nova Scotia have reached agreement on a US$M100 loan facility, following negotiations in Canada and Jamaica in recent weeks. On Friday, December 5, 2003 a GOJ delegation, comprising Minister of Finance, Omar Davies, the Governor of the Central Bank and the Financial Secretary, met with a team from BNS in Toronto. The BNS team included the Chairman of the institution, Mr. Peter Godsoe, the President/CEO, Mr. Rick Waugh and Mr. Robert Pitfield, Executive Vice President for International Banking and Chairman of BNS Jamaica Limited. Following the discussions in Toronto, Mr. Pitfield came to Jamaica on Friday, December 12th, to complete the negotiations. Final approval of the facility was given by BNS's Credit Committee in Canada today. The major features of the loan are as follows. It is a three year facility with an interest rate of 11.875% per annum. Interest payments are fully taxable. There is a two-year moratorium on principal payments with three payments to be made in the last year. Conclusion of negotiations for the loan is an important positive signal of continuing confidence from a major overseas financial institution. There are also two immediate benefits for the economy. The GOJ's need to access the domestic capital has been reduced, thus assisting with the objective of lowering interest rates. At the same time, the foreign exchange received will be sold to the Central Bank, thus bolstering reserve levels.
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