Industry, Commerce, Agriculture and Fisheries Minister Hon. Audley Shaw (centre) in discussion with (from left) Klaus Hesse, Team Leader of the Technical Assistance Programme to the European Investment Bank, and Deveta McLaren, Retail Sales & Marketing Manager, ACCESS Financial Services Ltd, at the Caribbean Microfinance Forum held at the Hyatt Ziva Hotel in Montego Bay on October 11, 2018.
Industry, Commerce, Agriculture and Fisheries Minister, Hon. Audley Shaw, says that the Microcredit Bill is being promulgated. He informed that the Bill is currently undergoing the final stages of preparation at the Chief Parliamentary Counsel, prior to submission to Parliament and will repeal the Moneylending Act.
Minister Shaw made the announcement on October 11, 2018, as he gave the keynote address at the Caribbean MicroFinance Forum held at the Hyatt Ziva Hotel, Montego Bay.
According to the Minister, the Government recognizes the vital role that the micro credit sector has played and continues to play in the delivery of financial services to many Jamaican entrepreneurs, as well as, the average Jamaican who has difficulty obtaining credit through conventional services, hence the need to regulate.
“As a Government, we recognize that regulation is important in promoting a responsible and sustainable microfinancing industry that will provide market demand products and services. Therefore, the Government of Jamaica has been working on the Micro Credit Bill to regulate micro financiers and protect their customers.”
He further explained that the new legislation is intended to make registration mandatory, establish qualifying criteria for registration, and create a Regulatory Authority to govern business standards and practices for the sector. The Bill, he informed, will also incorporate new provisions to promote full disclosure of all rates, fees and charges on principal debt, recognizing that transparency is the hallmark of all financial business activity.
Mr. Shaw noted that microcredit allows borrowers who typically lack collateral, stable employment and verifiable credit history to access very small loans to drive their entrepreneurial pursuits, alleviate poverty, and serves as a special purpose financing vehicle for those at the bottom of the economic pyramid.
“Microfinancing is a key strategy in helping persons plagued by poverty to become financially independent allowing them to better provide for their families. The value of this very important funding source, therefore, cannot be overstated, especially in developing countries like Jamaica, added Minister Shaw.”
Meanwhile, Coordinator, Micro, Small and Medium Enterprise Development, Technical Cooperation Division, Caribbean Development Bank (CDB), Lisa Harding, stated that, “The CDB continues to recognise microfinance and micro enterprises as important vehicles for the growth of economies and for poverty reduction.”
She commended the Caribbean MicroFinance Alliance in expanding its services beyond CARICOM to other overseas territories, and pledged CDB’s continued support to the microfinance sector in Jamaica.
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