The Jamaican Ministry of Finance reportedly has announced plans to regulate microfinance institutions (MFIs) in the country. This is made possible by the proposed Microcredit Act of 2013 that would replace the Moneylending Act of 1999. Under the new law, the maximum annual interest rate would be set at 40 percent. The proposed Microcredit Act also requires lenders to register with the Ministry of Finance and meet certain stipulations such as disclosing loan terms and risks. This would include providing borrowers with loan repayment amounts in terms of both percentage of principal and dollar value. Some terms of the Moneylending Act that deal with one-off transactions between private individuals will remain in effect.
By Megan McGowan, Research Associate
Sources and Additional Resources:
[1] The Gleaner: “Moneylenders To Be Licensed Under Micro Credit Bill,” http://jamaica-gleaner.com/gleaner/20131103/business/business5.html
MicroCapital: “$34m in Loans Provided by Development Bank of Jamaica to Micro-, Small and Medium-Sized Business Created 3,324 Jobs over 5 Years,” September 13, 2013, https://www.microcapital.org/microcapital-brief-34m-in-loans-provided-by-development-bank-of-jamaica-to-micro-small-and-medium-sized-business-created-3324-jobs-over-5-years/
MicroCapital: “Jamaica’s Ministry of Finance Delays Microfinance Institutions’ Exemptions from Money Lending Act, Blocking Wholesale Funding from Development Bank of Jamaica,” June 17, 2013, https://www.microcapital.org/microcapital-brief-jamaicas-ministry-of-finance-delays-microfinance-institutions-exemptions-from-money-lending-act-blocking-wholesale-funding-from-development-bank-of-jamaica/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: First Consult, Mastercard Foundation, Seek to Create 400k Jobs in Ethiopia via Access to Finance, Wraparound Support for MSMEs, Entrepreneurs
- MICROCAPITAL BRIEF: Arohan of India Raises $11m in Equity from FMO to Expand Microfinance, Including via Technology
- MICROCAPITAL BRIEF: Mi-Bospo of Bosnia and Herzegovina Borrowing $2.2m from Grameen Credit Agricole Foundation for Microfinance Lending
- MICROFINANCE EVENT: Enlit Africa Forum on Energy, Power and Water; May 16-18, 2023; Cape Town, South Africa
- MICROCAPITAL BRIEF: Imkon of Uzbekistan Nets Convertible Debt from BOPA to Expand Microfinance, SME Finance