BOJ: Lower demand slowed loan disbursements in June quarter

The Bank of Jamaica says lower domestic demand slowed the disbursement of loans in the quarter ended June.

 

BOJ Governor Richard Byles says reduced output in some sectors, has dampened the appetite for borrowing. 

 

"Against about the background of the lower economic growth, the net flow of new domestic currency loans to the private sector for the June 2024 quarter was lower than the flows in both March 2024 and June 2023 quarters," said Mr. Byles, who explained that net flow of loans is the difference between total disbursements and repayments.

 

He said a reduction in loan disbursements to the business sector was a key factor behind the fall in net flows and was consistent with the BOJ's continued tightening of credit terms offered by the banking sector.