26th July

Published on
CDB to Provide Financial Support for LIAT (1974) Limited's Restructuring Process The Caribbean Development Bank (CDB) has approved a package of financing in an amount not exceeding USD60.5 million to assist with the financial and institutional restructuring of LIAT (1974) Limited. Approval was granted at a meeting of CDB's Board of Directors at the Bank's Headquarters in Barbados on July 26, 2007.This package includes loans to the LIAT shareholder Governments of Antigua and Barbuda (USD21.8 million), Barbados (USD32.7 million) and St. Vincent and the Grenadines (USD5.4 million), as well as a grant directly to LIAT of USD500,000. The funds are to be used by LIAT in restructuring its operations with a view to enhancing the commercial viability of the airline. Since 2005, LIAT has been implementing a transformation strategy aimed at recapitalising the business, restructuring the airline's financial commitments and operations, and introducing a new business model. CDB is of the view that the maintenance of reliable and secure air services within the Region is vital to the economic development of the Bank's borrowing member countries, particularly in support of Tourism, of a critical importance to the regional integration process. CDB to Provide Line of Credit to Republic Finance and Merchant Bank LimitedCDB's Board of Directors has approved a line of credit not exceeding USD25 million to Republic Finance and Merchant Bank Limited (FINCOR). The loan will support FINCOR in the continuation of its lending activities in Trinidad and Tobago, Grenada and other borrowing member countries of CDB where FINCOR conducts business.The funds will be used to make sub-loans to business enterprises engaged in agriculture, industry, Tourism and related service sectors. Among the expected benefits are increased investments in these areas, business expansion and job creation, and increased availability of long-term financial resources.This is the third consolidated line of credit which CDB has provided to FINCOR. FINCOR is a subsidiary of Republic Bank Limited, which is based in Trinidad and Tobago.

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