Development Bank of Jamaica

The DBJ continues to support the Government’s focus on productivity and, for the financial year 2010/11, approved J$2.7 billion for the development of the productive sectors. Of this amount, J$2.24 billion (J$1,637 million and US$7.1 million) was disbursed for 4,430 projects in the sectors of agriculture, agro-processing, manufacturing, tourism and services.

Of the J$2.7 billion, a total of J$1.2 billion was committed and disbursed to the micro, small and medium-sized enterprises (MSME) sector by approved financial institutions (such as commercial and merchant banks, credit unions and the National People’s Cooperative Bank of Jamaica) to over 200 small and medium-sized businesses, while micro finance institutions (MFI) on-lent $228.6 million to over 4,000 micro enterprises.

This resulted in the Bank’s funding activities helping to establish nine new companies, create over 850 new jobs while maintaining close to 7,000 existing jobs.

. The agriculture sector, particularly the role and needs of the small farmer, is of particular concern for the Development Bank as this is an area that has traditionally been neglected by commercial lending institutions, given its vulnerability to natural disasters.

As a result, the DBJ has a special relationship with the National People's Co-operative Bank of Jamaica Limited (NPCB) which is virtually the only institution that lends to small and medium-sized farmers. In 2010/11,  J$351 million of DBJ funding was disbursed to this grouping.

These achievements were supported by the Bank’s ability to extend its record of profitability to the 11th straight year in 2010/11 with a net profit of $723.5 million, total assets of $48,928.0 million, total revenue of $4,413.2 million and a net worth of J$9,978.7 million. 

At the same time, the DBJ has continued in its role as the lead agency in the privatisation of Government-owned assets generating US$20 million (J$1.7 billion) in proceeds from the divestment of shares, land, three sugar factories and other properties.

Much of the Bank’s success is underpinned by the tremendous support it has received in its activities from international agencies and, during the period under review, relations remained strong between the DBJ and its international partners, such as the Caribbean Development Bank, Inter-American Development Bank (IDB), United States Agency for International Development, and the World Bank and its financing arm, the International Finance Corporation (IFC).

At least one programme (the IDB Liquidity Programme for Growth and Sustainability) is winding down but new ones have been introduced, giving the Bank and the country vital development support. These include:

* An agreement under which the IFC will give its considerable assistance and expertise to the Bank in strengthening the privatisation programme;
* A loan of US$15 million from the World Bank to the Government from which the DBJ will use US$4.6 million to establish a line of credit through AFIs for energy projects;
* An IDB grant of US$593,000 for a public education programme aimed at increasing awareness of energy conservation and renewable energy.