Cabinet Approves Junior Stock Market

Cabinet Approves Junior Stock Market

Senator the Honourable Don Wehby, Minister without Portfolio in the Ministry of Finance and the Public Service, today, announced that Cabinet has approved the implementation of the Jamaica Stock Exchange Junior Market, an initiative that will be done in conjunction with the Jamaica Stock Exchange

Minister Wehby feels that this initiative is critical to stimulating growth in the Jamaican economy by developing the small and medium sized enterprises sector. The Junior Stock Market will provide an easily accessible capital market facility for small and medium sized entrepreneurs (SMEs), those that generate annual revenues between J$50 million and less than J$500 million, who otherwise could not raise capital through commercial loans because the lack the necessary security. Investors would be allowed to put capital into legitimate small and medium sized companies listed.

“I am excited about its potential for stimulating economic growth while creating employment opportunities,” he said. “The initiative serves to broaden and deepen our local financial market while stimulating the development of SMEs.”

As a part of the proposal, a number of tax incentives will be given to companies choosing to list on the Junior Exchange. With the pending implementation, various brokers have already indicated that they have some potential clients showing interest in participating on the exchange.

A steering committee will be established to ensure implementation within the next 3 to 6 months. The committee will comprise representatives from the Ministry of Finance and the Public Service, the Financial Services Commission, the Registrar of Companies, the Institute of Chartered Accountants Jamaica, the Accountant General and the Ministry of Industry, Commerce and Investment.

The Minister is optimistic that this venture will improve transparency and good governance in a sector that employs the greatest percentage of the employed labour force.

Contact:

Communication & Public Relations Unit

Ministry of Finance and the Public Service

30 National

Heroes Circle

Heroes Circle

Kingston 4

Tel:  932-4656/4655/4660

Fax:  922-2669

Email:  cheryls@mof.gov.jm/chris@mof.gov.jm