FIRST Heritage Co-operative Credit Union (FHC) has earmarked $1.5 billion to provide loans for micro-, small- and medium- enterprise sector over the next three years.

Chief executive officer Basil Naar in a release to the Jamaica Observer said that the organisation is serious about promoting micro- and small-business enterprises and entrepreneurship. He added that the FHC is taking a direction which it believes is vital for the growth and development of Jamaica’s economy.

“We are shifting away from financing consumer durables although there is still a demand for this type of loan that is greater than that for business loans. That I think is the experience of all financial institutions,” Naar stated.

“There seems to be a greater demand for consumer-type loans, but we will continue to push hard to encourage people to go into business and those who are in business to expand their businesses.”

“We believe that if we keep at this, we will be a signal example of what a financial institution can do to assist in growing the economy. A country will not grow and increase its GDP without a business environment that is robust,” Naar explained.

FHC was first formed from the merger of Churches Co-operative Credit Union and GSB Co-operative Credit Union in 2012. In March, the credit union also merged its operation with the St Thomas Co-operative Credit Union, strengthening the asset base of the FHC to some $10 billion and membership of approximately 190,000.

The merger has also increased the number of FHC branches to 11 across the island and strengthened its hold as the second largest credit union in Jamaica, with over 200,000 members with a loan portfolio of over $7 billion to date, according to Naar.

The CEO who has been serving the company for more than ten years has indicated that he is a staunch believer that the future development of Jamaica’s economy depends on the growth of micro- and small- businesses.