Scotiabank Jamaica and the Canadian International Development Agency (CIDA) have committed an additional $115 million (C$1.6 million) to Micro Enterprise Financing Limited (MEFL) to fund the distribution of loans to small companies.

CIDA is providing the larger portion of $66 million, while Scotiabank is fronting $49 million.

MEFL, up to January 31, had disbursed over $520 million in loans to 13,200 clients, said the bank.

"The most outstanding success of this programme is the accumulated savings of $31 million in bank accounts for the clients," said MEFL chairman, William Clarke, who is also president of Scotiabank Jamaica.

"There is no other micro-finance entity in Jamaica that actively promotes savings. therefore, this unique feature of the MEFL strategy can hardly be replicated."

The additional capital for MEFL was announced Wednesday.

The micro-financing agency is a near six-year old operation, started as collaboration between partners Scotiabank, Kingston Restoration Company and CIDA.

Contributions

To date, contributions to MEFL have been close to C$6 million - CIDA, C$2.92 million - and the JMD equivalent of C$3 million by Scotia, the bank said.

The agency has a new general manager, Glenroy Bernard, who will oversee operations in MEFL's four locations islandwide - Kingston; Santa Cruz, St Elizabeth; Savanna-la-Mar, Westmoreland; and, Linstead, St Catherine.

MEFL will be expanding to other parishes over the next five years, Scotiabank said.

business@gleanerjm.com