The Bank of Nova Scotia Jamaica Limited (BNSJ)

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MIGA has provided The Bank of Nova Scotia (BNS) of Canada with a guarantee of $45 million to cover its $50 million medium- to long-term loan to The Bank of Nova Scotia Jamaica Limited (BNSJ). The guarantee is for up to fifteen years and is against the risks of transfer restriction and expropriation of funds. In Jamaica, increasing availability of low cost long-term hard currency funds in both the financial sector and the general economy is a crucial development objective. Expansion of local bank lending activities is expected to play an important role. This project will allow BNSJ to expand the scope of its medium- to long- term hard currency lending to fund projects in the infrastructure, tourism, port services, wharfage services, water distribution and manufacturing sectors at preferential interest rates. In addition to increasing availability of such funds, the project is expected to increase competition among loan providers, thus creating incentives to improve efficiency and quality. The project's positive upstream and downstream impacts on several industry sectors will enhance the country's general economy, thereby contributing positively to the country's foreign exchange position. BNSJ has also demonstrated a commitment to extensive community activities, through special lending programs and charitable work in the education, health and social development sectors. Examples include: special low-cost loans for SMEs; advantageous mortgages for first-time home buyers and university graduates; university scholarships; and a special micro-finance joint venture (with the Canadian International Development Agency and the Kingston Restoration Company) to focus on projects in impoverished areas of Kingston's inner city.

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