Opposition calls for equal access to education loans

Tuesday, February 03, 2015 | 5:58 PM    

KINGSTON, Jamaica – Opposition spokesperson on Education and Youth, Senator Kamina Johnson Smith is calling on Minister of Education Ronald Thwaites to clarify the Government’s position on the treatment of Science Technology Engineering and Math (STEM) applicants by the Students’ Loan Bureau (SLB).

Senator Johnson Smith said, “While we are all aware of the need to reform the funding of tertiary education, as a country we must ensure that there is equity and access for our young people. If the Government, through the Ministry of Education, is mandating limited access to funding for certain disciplines we would be concerned because in a democratic society, the government’s policy should not be to exclude students because of their interests.”

“There is a better way,” she insisted.??According to the Opposition spokesperson on education, the Students’ Loan Bureau should introduce a loan framework which balances national development with freedom of choice. 

“This could be done by introducing different interest rates, bonding arrangements and repayment periods combined in different ways, depending on the course of study to be pursued,” said Senator Johnson Smith.?”Aligning better interest rates, bonding arrangements and repayment periods with areas important for national development would balance choice and market needs, but would not completely exclude young people without interest or ability in STEM areas for example, who need financial support for tertiary education,” she continued.??In a news release on Tuesday, Senator Johnson Smith explained that the Jamaica Labour Party’s policy direction first announced in 2009 was that the SLB should offer incentives to young people to encourage them to take up studies in areas important to national development – and that these would certainly include STEM subjects. The intention however, was not to exclude or bar young people from getting loans to study in areas of interest to them.

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Opposition calls for equal access to education loans

Financial institutions to boost loans this quarter

The Bank of Jamaica said financial institutions have indicated that they will boost loans in the current quarter, but unsecured loans are expected to decline.  
The financial institutions made the disclosure to the central bank in its quarterly survey of credit conditions.  
The survey found most lenders anticipating to lend mainly to businesses.  
Most of the household loans are expected to be made to those wanting credit cards, mortgages and other loans backed by real estate. 

It however says the anticipation is that apart from credit cards, financial institutions will reduce the amount of  unsecured loans they offer.  

Financial institutions say their overall expectation of  lending more money this quarter is driven by perceptions that the economy is improving.

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Financial institutions to boost loans this quarter

June personal loans exceed forecast

Financial institutions say personal loans made in the June quarter exceeded forecasts.  
The financial institutions say they saw a 19 % increase in personal loans when compared to March. 

The increase in personal loans was due to stronger demand for credit cards, debt consolidation loans and mortgages.

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June personal loans exceed forecast

Jamaica to benefit from US$105 million World Bank loans

WASHINGTON D.C., United States, Friday September 5, 2014, CMC – Jamaica has signed three loans totalling US$105 million with the World Bank to support a number of government projects.

Finance and Planning Minister Dr. Peter Phillips, who is leading a four-member delegation to the United States, Wednesday signed the accord, while World Bank Country Director for the country, Sophia Sirtaine, signed for the bank.

The loans are in support of three government projects – the Foundation for Competitiveness and Growth, which will receive US$50 million; the Youth Employment in Digital Animation Industry, US$20 million, and the Strategic Public Sector Transformation Project, US$35 million.

“The projects are intended to further the overarching goals of the government of Jamaica-World Bank Country Strategy for the period 2014 – 2017; to support the government’s investments in key strategic areas, including physical sustainability in youth employment; public sector modernization and to facilitate a more enabling environment for private sector growth,” Phillips said.

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He said the loans represent an important cooperation between the Government of Jamaica and the World Bank, and is aimed at advancing the prospects for growth as the country goes through a strenuous economic reform programme that forms part of the agreement with the International Monetary Fund (IMF).

Phillips said the Portia Simpson-Miller administration will do its utmost best to ensure a smooth implementation of the three projects, noting that the funds for the Foundation for Competitiveness and Growth project will enhance competition in the business environment, facilitate strategic private investments and support Small and Medium Enterprises (SMEs).

Funds for the Youth Employment in Digital Animation Industry will provide training and coaching for over 200 young Jamaicans, enhance entrepreneurial skills and create 150 start-up companies.

Under the Strategic Public Sector Transformation Project, the funds will be used to strengthen public investment management systems, budget preparation process and property tax compliance administration.

In her remarks, the World Bank official praised Jamaica for implementing programmes aimed at spurring economic growth.

She said the bank is committed to working with Jamaica in ensuring the success of its various economic programmes.

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Jamaica to benefit from US$105 million World Bank loans

Increase in secured loans predicted for June quarter

Financial institutions expect figures to show an increase in demand for secured loans for the June quarter.   
According to the Bank of  Jamaica’s Quarterly Credit Conditions  Survey Report, interest rate changes and loan promotion activities are expected to drive the anticipated increase in credit demand.  
It is believed that credit conditions in the market for secured and unsecured loans will have a positive impact on credit demand.  
Lenders expect an extension in the maximum repayment period on secured and unsecured loans as well as higher credit card limits.

However, an anticipated increase in the required minimum repayment amount and the expectation for higher fees will temper credit demand.

The report also shows that at the end of  March, the stock of  credit in the banking system was $473.6 billion. This reflected a 1.2% increase relative to December 2013.    
The BOJ’s Quarterly Credit Conditions Survey suggests that 58 per cent of loans was distributed to households and 42 per cent to businesses across all firm sizes.    
This reflects a change in the distribution relative to the December 2013 quarter when 63 per cent of the stock of credit was allocated to households and 37 per cent to businesses.

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Increase in secured loans predicted for June quarter