The National Export Import (EXIM) Bank is offering increased support to the Jamaican non-traditional export sector in the form of developmental loans beginning at the rate of 12 per cent for Jamaican dollar loans, and eight percent for USD loans. The Bank is targeting existing and potential exporters as well as those who provide products and services to exporters.

Yesterday, Lisa Bell, managing director of the EXIM Bank noted that the non-traditional export sector continues to perform well despite the economic challenges facing the country and that the Bank is hoping to help grow the sector in line with government projections of five per cent per annum.

“EXIM has set a key performance indicator related to insuring the growth in exports of the clients we service. That target has been set conservatively at five per cent given the post recession realities,” she told the Business Observer.

Despite the conservative growth projections, the Planning Institute of Jamaica (PIOJ) has reported that the merchandise export earnings between January and March 2010 increased 6.7 per cent over the similar period last year. The non-traditional sector accounted for almost half of the $1.1 billion export earnings, from all sectors, including services.

“That is very positive news as we recognise more producers are thinking out of the box. We recognise that any financial support the sector can be afforded is critical to the further growth of the sector,” Bell said. Producers in some non-traditional sectors, including agro-processing, manufacturing, mining and minerals, tourism, ICT and renewable energy, can also access specialised loan products of 9.75 per cent and 5.63 per cent per annum on the reducing balance.

“We have been in discussions with several stakeholder groups and we are taking on board the suggestions as we aim to deliver key elements of financial assistance to the productive sector. We are also negotiating several other lines with a view to increasing our lending to the productive sector,” Bell said. The private and public sector groups include the Jamaica Exporters’ Association, the Jamaica Manufacturers’ Association, the Agro Processors Association and the Jamaica Hotel and Tourist Association who will assist in getting members up to speed on the developments.

In addition to reduced loan rates, Bell said the Bank would be making it easier for clients to qualify to access the facilities. The Bank will now accept a mix of collateral such as mortgages, bills of sales and assignment of receivables, to make accessing the loans easier. In addition, Bell said EXIM Bank would re-examine its processes to further reduce loan processing times and work towards establishing online payments for customers. “All of this will be supported by innovative marketing initiatives to ensure penetration across the island,” she said.

“Jamaica’s competitive advantage lies for the future in non-traditional exports, and it is for this reason that EXIM continues to focus its strategy in facilitating these sectors and sub-sectors,” Bell added. “The hope is to foster the development of new or emerging markets and to diminish the reliance on the few traditional exports on which the economy has depended for many years.”