EX-IM touts energy loan as oil prices climb

Solar lights at Bellevue Hospital in Kingston.

EX-IM Bank Jamaica on Tuesday urged Jamaican producers to begin retrofitting their operations for energy efficiency to contain costs, as oil prices climb on the world market.

Crude sold for more than US$91 per barrel Tuesday and is forecast to hit US$100 sometime this year. EX-IM said producers should act now to access its energy loan to develop renewable energy systems, such as solar, wind, biogas, for electricity conservation to protect against the adverse effects of rising energy costs. The loans are priced at 9.5 per cent on JMD credit.

Jamaica's electricity costs are among the highest in the region, due largely to high dependence on imported oil, the bank said in a statement

"Analysts expect the cost of fossil fuels to increase, and the demand for these products to also increase. That creates the perfect scenario for high prices which can be detrimental to local businesses," said Ann-Marie Walter Allen, chief marketing officer. "Business owners can therefore mitigate against those risks by spending the money now to cut dependence on oil and thus see better profit in the future."

business@gleanerjm.com