JamFA defends microfinanciers

BY BALFORD HENRY Senior staff reporter balfordh@jamaicaobserver.com

Friday, December 12, 2014    

Jamaica Micro Financing Association (JamFA) Chairman Hurshel Cyrus says that the delay in introducing legislation to regulate the sector is handicapping its efforts to establish its value to Jamaica’s growth and development.

“We are in a fast evolving sector, and there is need for us to have some kind of order in the sector for it to realise its full potential… That is why we are insisting that some kind of regulation must be introduced very, very shortly,” Cyrus said.

He was responding to recent media reports that the Consumer Affairs Commission (CAC) has cautioned Jamaicans about how they do business with same-day loan operators during the Christmas season.

According to the media report, CAC Director of Communications Latoya Halstead said that the commission has received anecdotal evidence that some microfinance businesses have been engaging in questionable activities.

However, Cyrus pointed out that JamFA has been insisting that the answer to the problem is not in condemning the sector, but in introducing the proposed Micro Credit Bill, with the necessary regulations, to protect both the creditors and the borrowers.

“Over the years, the microfinancing landscape has changed significantly, and when we speak of microfinancing, we don’t just speak of only lenders any more, although a lot of Jamaicans are focused almost exclusively on that. But there are changes around the world, and I am seeing them in Jamaica also, where other products have been introduced,” Cyrus stated.

“So when you think about microfinancing, we think about things like loans, savings, insurance, transfer services and other financial products, which are particularly targeted to the low-income strata. We are seeing the transfer of funds now by cellphone, mobile money, that is a form of microfinancing,” he pointed out.

Cyrus said that recent developments, like the implementation of the Security Interests in Personal Property (SIPP) legislation, and the establishment of the National Collateral Registry, which is designed to improve commerce by expanding access to domestic credit while minimising the risks of loan default, are welcome improvements for the sector.

He noted that under the SIPP registry, which will be a repository of information on non-real estate assets tendered as collateral for securing loans under the SIPP Act, assets include motor vehicles, stocks and securities, agricultural products, crops and other agricultural yields, machinery and equipment, accounts receivable and futures, future acquisition of security interests, and unborn livestock.

He said that financial institutions will have to register notices of loans granted and the associated assets used as collateral. The availability of this information in a central database will enable the institutions to verify any previous use of the potential collateral, and establish priority with regard to other claimants on the same asset

However, he said that in order to properly regulate the sector and guard against problems, like those which have been raised about it, the micro credit legislation is essential.

“I am still hoping that Parliament will move on it quickly so we can have a registration environment for the companies that operate within the sector, because only that will ensure that we serve the public better,” Cyrus said.

According to JamFA Executive Director Raymond Gabbidon, it is essential that the Government enact legislation to create a proper regulatory framework for Micro Finance Institutions (MFIs).

He said that this would help to create a more trusting environment for the loan companies and their clients and reduce the risk of some MFIs being labelled as “loan sharks”.

“The latent capacity of the poor for entrepreneurship can only be significantly enhanced with the provision of microfinance services, to enable them to engage in economic activities and be more self-reliant,” Gabbidon said.

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JamFA defends microfinanciers

Hylton defends changes to car import policy

Commerce Minister Anthony Hylton has defended new provisions in the Motor Vehicle Import Policy in the wake of rumblings in the used car trade. He says there was adequate consultation on the revised policy. The Jamaica Used Car Dealers Association last week declared that its members will not comply with new requirements that they provide warranties for front end and electrical parts on vehicles they sell.The Minister responded to the Association’s concerns last night and emphasized that the policy was geared towards the proctection of consumers. “We have had a long period of experience of the situation (insofar as) it affected the consumers’ interests, and we believe that that requirement, which is graduated, depending on the age of the car, would have taken into consideration, not just the condition of the road, but all the other pertinent comments that would have been made as part of the consultation,” he said.Accordingly, he claimed, all the relevant rights and interests had been balanced in the process.The Used Car Dealers Association believes the Policy will discourage its members from importing popular affordable vehicles, to avoid the risk of  paying extensively to change certain parts.In the meantime, Mr. Hylton says the door is still open to members of  the used car industry to air concerns about the new Policy.

View the original article here

Hylton defends changes to car import policy

Hylton defends changes to car import policy

Commerce Minister Anthony Hylton has defended new provisions in the Motor Vehicle Import Policy in the wake of rumblings in the used car trade. He says there was adequate consultation on the revised policy. The Jamaica Used Car Dealers Association last week declared that its members will not comply with new requirements that they provide warranties for front end and electrical parts on vehicles they sell.The Minister responded to the Association’s concerns last night and emphasized that the policy was geared towards the proctection of consumers. “We have had a long period of experience of the situation (insofar as) it affected the consumers’ interests, and we believe that that requirement, which is graduated, depending on the age of the car, would have taken into consideration, not just the condition of the road, but all the other pertinent comments that would have been made as part of the consultation,” he said.Accordingly, he claimed, all the relevant rights and interests had been balanced in the process.The Used Car Dealers Association believes the Policy will discourage its members from importing popular affordable vehicles, to avoid the risk of  paying extensively to change certain parts.In the meantime, Mr. Hylton says the door is still open to members of  the used car industry to air concerns about the new Policy.

View the original article here

Hylton defends changes to car import policy

Hylton defends changes to car import policy

Commerce Minister Anthony Hylton has defended new provisions in the Motor Vehicle Import Policy in the wake of rumblings in the used car trade. He says there was adequate consultation on the revised policy. The Jamaica Used Car Dealers Association last week declared that its members will not comply with new requirements that they provide warranties for front end and electrical parts on vehicles they sell.The Minister responded to the Association’s concerns last night and emphasized that the policy was geared towards the proctection of consumers. “We have had a long period of experience of the situation (insofar as) it affected the consumers’ interests, and we believe that that requirement, which is graduated, depending on the age of the car, would have taken into consideration, not just the condition of the road, but all the other pertinent comments that would have been made as part of the consultation,” he said.Accordingly, he claimed, all the relevant rights and interests had been balanced in the process.The Used Car Dealers Association believes the Policy will discourage its members from importing popular affordable vehicles, to avoid the risk of  paying extensively to change certain parts.In the meantime, Mr. Hylton says the door is still open to members of  the used car industry to air concerns about the new Policy.

View the original article here

Hylton defends changes to car import policy

Industry Ministry defends changes to car import policy

8:40 pm, Sun September 28, 2014

Industry Ministry Anthony Hylton has defended new provisions in the Motor Vehicle Import Policy in the wake of  rumblings in the used car trade.He says there was adequate consultation on the revised Policy. The Jamaica Used Car Dealers Association last week indicated that its members will not comply with new requirements that they provide warranties for front end and electrical parts on vehicles they sell.The Industry Minister responded to the Association’s concerns last night and emphasized that it was geared towards the proctection of consumers. The Used Car Dealers Association says the Policy will discourage its members from importing popular affordable vehicles to avoid the risk of  paying extensively to change certain parts.In the meantime, Mr. Hylton says the door is still open to members of  the used car industry to air concerns about the new Policy.

View the original article here

Industry Ministry defends changes to car import policy

Industry Ministry defends changes to car import policy

8:40 pm, Sun September 28, 2014

Industry Ministry Anthony Hylton has defended new provisions in the Motor Vehicle Import Policy in the wake of  rumblings in the used car trade.He says there was adequate consultation on the revised Policy. The Jamaica Used Car Dealers Association last week indicated that its members will not comply with new requirements that they provide warranties for front end and electrical parts on vehicles they sell.The Industry Minister responded to the Association’s concerns last night and emphasized that it was geared towards the proctection of consumers. The Used Car Dealers Association says the Policy will discourage its members from importing popular affordable vehicles to avoid the risk of  paying extensively to change certain parts.In the meantime, Mr. Hylton says the door is still open to members of  the used car industry to air concerns about the new Policy.

View the original article here

Industry Ministry defends changes to car import policy

Stuart defends Barbados as a reputable, sustainable international financial centre

Barbados Prime Minister Freundel Stuart (File photo)

BRIDGETOWN, Barbados, Friday September 12, 2014, CMC – Barbados Prime Minister Freundel Stuart Thursday said his administration places high priority on ensuring the sustainability of the international business and financial services sector, (IBFSCs) and is seeking new ways to improve the value offered to those who view the island as the international financial centre of choice.

Addressing the one-day international conference on international financial centres (IFCs) in a borderless digital economy, Prime Minister Stuart said that over the years, progressive legislative changes had been made to provide investors with the tools needed to do business.

“This has meant, in many cases, upgrading existing products and introducing new ones. In recent times, the moves to allow for Private Trust Companies and Foundations bear witness to our recognition of the need for evolution and adaptation,” he told delegates.

He said the term “International Financial Centre” now appears to focus mainly on the small developing countries providing business and financial services, and some have been labelled as “offshore financial centres”, tax havens, or “sunny places for shady people.

“In every area of economic endeavour where developing countries have managed, through a spirit of independence, and by dint of hard work and investment in the development of their human and other resources, to perform as well as or better than developed countries, the playing field ceases to be level, and new and creative obstacles are placed in their way.

“There are, therefore, increasingly robust debates, discussions and empirical studies on the contribution of IFCs to the global financial system, focused in particular on the contribution provided by developing countries.

“IFCs offer competitive tax rates and other concessions which attract business, and this raises concerns about tax evasion, and more recently about money laundering. In spite of adverse public comment fuelled by vocal critics, however, an increasing body of research contradicts this negative narrative,” Stuart said.

Prime Minister Stuart noted that a number of world-renowned academics had rejected the notion that IFCs were locations of choice for secret accounts and other vehicles for international tax evasion.

He said that some findings point to this being the reality in larger, more developed countries, rather than in small developing countries.

Prime Minister Stuart said Barbados’ strong regulatory framework gave assurance of its commitment to operate according to global standards.

He said the sector is of great benefit to the international partners, as well as the Barbados economy. He said it not only generates taxes and salaries for employees, but also revenue in the areas of real estate, tourism, health and education services.

The conference, targeting officials in the local, regional and international financial services sector is sponsored by Invest Barbados and The Central Bank of Barbados.

The organisers said it will demonstrate the Barbados value proposition with an examination of the Canada Barbados relationship, and will take an objective look at the role of nation states in protecting the efficacy of IFCs.

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Stuart defends Barbados as a reputable, sustainable international financial centre