DBJ says no to increasing loan spread, Tells credit unions to add fees instead

The Development Bank of Jamaica (DBJ) says it has offered credit unions a compromise – adding fees to loans – that should settle differences over the interest-rate spread at which they are allowed to lend. The lending agencies, however, say the sector is still studying it but appear lukewarm to the idea. DBJ, which distributes loan capital through approved financial institutions, or AFIs, stipulates that the interest rate to end users can be no more than three per cent higher than its rate to the AFIs. The credit unions, however, say they need a spread of about…

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