Jason Henzell, president of Island Outpost and owner/chairman of the Treasure Beach foundation, Breds. - File

Attempts by the Chris Blackwell-led groups, Island Outpost and Island Jamaica, to bring the Bangladesh-based Grameen Bank to Jamaica have been stalled by the failure to raise US$2 million (J$180 million) in equity capital required for the venture.

Hotelier Jason Henzell, lead man on the negotiations to open up a new frontier in microfinancing here, says the plan has been put on the back burner, at least until the credit markets regain elasticity.

"We were not able to raise the funds because of the economic downturn," he said Tuesday.

"Ironically, the funds would have been needed now, but they are not currently available."

Bank of the poor

Based in Bangladesh, the Grameen Bank is known internationally as the bank of the poor with interest rates ranging from zero per cent to 20 per cent on the reducing balance.

In 2008, Island Outpost members invited the Grameen Trust to visit Jamaica preliminary to talks on establishing a local branch.

Between February 26 and 29 last year, the mission visited poverty pockets in Trench Town in Kingston, Bunkers Hill, Falmouth, and Oracabessa in St Mary.

The mission found high demand for Grameen credit among the poorest, but talks on setting a branch in Jamaica have stalled for lack of start-up capital.

Funding

New Grameen branches are required to fund themselves entirely with the deposits they mobilise, and is expected to break-even within the first year of its operation.

The bank, at December 2008, had grown to 7.67 million members to whom US$7.59 billion was issued as loans.

Grameen, whose shareholders are its borrowers, also declared 30 per cent cash dividend for the year 2008.

Henzell said the bank also visited Haiti on its Caribbean foray and appears to consider its situation a more urgent project for the organisation.

Nevertheless, he said, negotiations would resume as soon as economic conditions improve.

"We will not allow the idea to die," said the hotelier.

avia.collinder@gleanerjm.com