'Repeal Money Lending Act'
May 20, 2007
MONTEGO BAY, ST James - General Manager of Jamaica National Building Society (JNBS) and Chairman of JN Small Business Loans Limited, has described Jamaica's Money Lending Act as an irrelevant piece of legislation which has no place in an open market.
"I cannot see the relevance of this law in an open market and steps should be made to have it repealed," he told participants at the 6th Annual Roundtable on Microfinance in the Caribbean last Thursday ( May 17.2007).
The three-day conference which began on Tuesday, was hosted by the Caribbean Microfinance Network (CMN) at the Holiday Inn and Sunspree resort in Rosehall Montego Bay. The conference which was staged under the theme - 'Managing our Caribbean Microfinance Institutions for Sustainability, Viability and Growth to serve the majority' - saw the participation of some 60 participants representing 41 Caribbean institutions that specialise in the business of assisting small businesses.
The Act which was passed in 1938, governs money lending transactions in Jamaica. It makes it illegal for entities other than banks to charge interests rates of above 20 per cent.
Jarrett's speech-delivered at the close of the conference - also encouraged the CMN to protect the microfinance sector from the infiltration of predatory lenders through continued self-regulation.
He also urged the CMN to take advantage of the opportunity to enlist greater US support for itself at the the US CARICOM 20/20 Vision meeting scheduled to be held in Washington DC next month.
Author: Pat Roxborough-Wright
Source: Jamaica Observer
