CHIN

Tashieka Mair, Gleaner Writer

WESTERN BUREAU:

Despite boasting a record $1.71 billion loan disbursement to more than 22,000 micro businesses across Jamaica since its inception 15 years ago, the Micro Investment Development Agency (MIDA) is being advised to increase the interest on loans if it is to survive.

Step to make surplus

According to senior director of policy, planning, projects and research in the Ministry of Industry, Technology, Energy and Commerce, Reginald Badhan, that institution has to take such a step if it is "to service itself, and make a surplus."

Mr. Badhan was speaking at a special 15th anniversary function at the Wexford Court hotel in Montego Bay, St. James yesterday.

In references to statements made by MIDA Managing Director Vivian Chin, that the institution was seeking funding from PetroCaribe, Mr. Badhan said: "The PetroCaribe facility is going to be lending US loans, so that means you will have to take the exchange rate risk so if you have to take that risk, and you don't want government to bail you out."

He went on, "you want to be able to constantly, on an ongoing basis, expand your portfolio, you have to charge an interest rate that will allow the CDF (Community Development Fund) to cover their operating costs, to pay you back and for you to have enough to compensate for the continuous decline in the exchange rate," he said.