Businesses get $2b DBJ-backed relief after Hurricane Melissa

The Development Bank of Jamaica says about $2 billion in financing has been approved for businesses still dealing with the impact of Hurricane Melissa, even as the country heads into another hurricane season. The bank says the support reflects the pressure many operators continue to face, particularly in western Jamaica, where concern about another severe weather system remains high.

Through its M5 recovery programme, the DBJ has worked with a network of financial institutions to help affected enterprises restart, repair and strengthen their operations. Managing director Dr David Lowe said the approved funding is being channelled through participating banks by way of drawdown arrangements, and that the programme is not limited to fresh loans. It also allows businesses to refinance existing debt.

The DBJ says firms in agriculture, hospitality and retail remain under strain from the category five hurricane. Demand for assistance has also shown that many operators need more than money to replace damaged property or equipment. Some are seeking working capital to keep their businesses running over the longer term.

Lowe said M5 was designed as more than a short-term response to Melissa. He said the bank sees it as a flexible framework that can adjust as needs change, including during the current hurricane season and over a three-year period. The aim, he said, is to have financing options ready if another major storm causes fresh damage.

With climate-related disasters expected to grow more intense and expensive, the DBJ says recovery must be tied to preparation. Lowe said the bank expects to have stronger response tools over the next 12 months and credited wider collaboration among government agencies that worked together after the hurricane.

In market activity, the JSE index fell by 3,256 points, while the junior market index gained one point. Main Event Entertainment Group, Blue Power Group, Jamaica Public Service 7%, Medical Disposables and Supplies, and Image Plus Consultants were among the winners. ISP Finance Services, AS Bryden and Sons Holdings, Productive Business Solutions 9.25%, Radio Jamaica and Jetcon Corporation led the losers, while 22 stocks traded firm.

At the close of foreign exchange trading, banks and cambios sold the US dollar for an average $158.10. The Canadian dollar averaged $113.80, the pound $215.04 and the euro $187.79.