Thursday 17 October, 2019

CDB signs off $230 million for government

Prime Minister Mia Mottley and CDB President, Dr. William Warren Smith signing off on the loan agreement.

Prime Minister Mia Mottley and CDB President, Dr. William Warren Smith signing off on the loan agreement.

The Caribbean Development Bank (CDB) has approved a policy-based loan for the government of Barbados valued at US $115 million. 

The agreement was signed off by the President of the CDB, Dr. William Warren Smith and Prime Minister, Mia Mottley at the Bank’s headquarters this morning which will see the first disbursement of US $75 million available almost immediately to government.  

These funds are to be used as budgetary support for the Barbados Economic Recovery and Transformation (BERT) programme for the purposes of social protection, climate change resilience and improving the ease of doing business in the country.  

The remaining US $40 million will be set aside for the upgrade of infrasturcture and services at the Grantley Adams International Airport (GAIA).  

Prime Minister, Mia Mottley told the media the support by the International Monetary Fund (IMF) of the BERT programme has, as expected, encouraged the support of other funding agencies, adding the rollout of BERT is going according to plan.  

“I am now satisfied that we are on a trajectory that will allow us to be successful over the course of the medium term for the benefit of the people of Barbados.” 

The terms of the loan include a five-year grace period, 12 years to repay the principal amount and an interest rate of 4.5 percent.  

PM Mottley said the terms of the loan “fit Barbados perfectly”. 

“We need four to five years to build back the economy and therefore that grace period is absolutely critical for us.” 

She also said the funds will assist in bolstering the level of foreign reserves which she noted is “much healthier” than when she inherited the government earlier this year. 

She revealed government wants to carry out a thorough procurement process for the work at the GAIA and they expect to start construction by the end of the first quarter next year. 

 

 

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