Loan for St. Lucia

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July 30, 2008No. 17/08-BD NEWS RELEASE CDB Approves 30-million dollar Loan for St. Lucia The Board of Directors of the Caribbean Development Bank (CDB) has approved a USD30 million policy-based loan to the Government of St. Lucia. The objective of the policy-based loan is to help the Government implement agreed policy reforms and initiatives aimed at building the country's institutions, to help it withstand economic shocks and to advance its macroeconomic and social development programme. Specifically, the loan will support reforms in the areas of revenue and expenditure management, including a value-added tax and a new property tax. It differs from previous policy-based loans financed by the Bank, which were driven by the need for urgent reforms in economies where the fiscal balance and public debt had reached unsustainable levels. In this case, the loan is to support policy reforms that are being implemented in a timely manner, which will facilitate the Government giving adequate focus and attention to its macroeconomic and poverty-reduction agenda. This loan is part of a broader assistance strategy by CDB for St. Lucia, designed to enhance sustainable economic growth, promote good governance and foster inclusive social development. The loan is expected to contribute to improvements in the performance of key macroeconomic and social indicators, including gross domestic product, per capita income, fiscal balance and debt ratios. - END -

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