Last year, we saw an appreciable reduction in mortgage interest rates but less so in other lending rates. We think that current spreads could more than afford a sizable cut in bank lending rates. 9. Few banks have taken steps to facilitate lending to small businesses. However, data on loan guarantees to small businesses, through the Business Development Company show a continued decline.
For the medium term, it will be important for Government, the banks and the business sector to work to enhance small business development programmes. 10. The Central Bank is able to give the assurance that foreign exchange availability would not be a bottleneck to production. As noted earlier, the prospect is for buoyant energy prices.