Jamaican businesses show little interest EXIM Bank’s trade credit insurance facility
Jamaican businesses show week demand for EXIM Bank’s Insurance Policy Discounting Facility A trade credit insurance (TCI) facility at EXIM Bank Jamaica that provides backing for uncollected sales receipts has failed to excite small companies, only a few of which are subscribers to the accompanying loans offered as working capital to cover gaps in payment. Companies have bought some J$1.6 billion of insurance coverage against their receivables, and policyholders could potentially borrow up to 80 per cent the equivalent on 120-day or four-month cycles at rates of 11 per cent per annum. But loan subscriptions under the so-called Insurance Policy Discounting Facility (IPDF) in the past three years have averaged only J$56 million annually or about 3.5 percent of coverage bought, according to data provided by EXIM chief officer, operations and insurance, Shernett Manning.&
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