CDB approves USD10 Million Line of Credit to Government of Grenada

There should soon be improved access to affordable financing for investments in Grenada’s productive sectors, as the Board of Directors of the Caribbean Development Bank (CDB) approved the provision of a US$10 million Consolidated Line of Credit to the Government of Grenada on Thursday December 10, 2015.

The funds, which will be disbursed though the Grenada Development Bank (GDB), will be used to assist in improving Grenada’s human resource capacity, the viability of micro, small and medium-sized enterprises (MSMEs), housing stock for low and low-middle income families, as well as a pilot project to support Energy Efficiency/Renewable Energy (EE/RE) in MSMEs.

Director of Projects at CDB, Daniel Best, noted that CDB is committed to facilitating development of productive and social sectors in all its Borrowing Member Countries (BMCs). “CDB views investment in strengthening human resources and capacity development as a core priority for the overall development of our BMCs, and our strategic objectives reflect this. We support inclusive and sustainable growth and development, environmental sustainability and improving access to education and training expect that through this line of credit, the Grenada Development Bank will be better equipped to meet the demands for financing in a variety of emerging sectors.”

The project will consist of several components including credit to finance projects in agriculture; fisheries; manufacturing and tourism by MSMEs; student loans and mortgage financing for low and lower-middle income households. An additional component will be the pilot project for EE/RE among MSMEs in Grenada. This project seeks to enhance awareness and mitigate high energy costs among an initial five participating MSMEs, through both a loan as well as the provision of technical assistance to MSMEs seeking assistance for EE/RE enhancements.

Timothy N.J. Antoine, Permanent Secretary in the Ministry of Finance, Planning, Economic Development, Trade, Energy & Cooperatives, and CDB Director for Grenada, said that his country was very pleased with the approval. “The Grenada Development Bank has made great strides in the last few years to improve operationally, managerially and it has actually seen non-performing loans go down. So I think it is an expression of confidence that the CDB is willing, through the Government of Grenada, to lend to the GDB for very important development priorities.”   

Among expected results are increased: supply of skilled graduates, lower-income housing and awareness and usage of EE/RE solutions among MSMEs in Grenada. It is also expected to help expand the MSME sector, enhance the capacity of the GDB to identify, appraise and supervise EE/RE projects.