SVG: First to receive loan from CDF

This country became the first to receive financial assistance since the establishment of the CARICOM Development Fund (CDF) on Tuesday, May 24,{{more}} when Prime Minister Dr. Ralph Gonsalves signed a loan agreement for US$4.21M.

The money will be put towards the purchase of stone crushing equipment and to purchase runway lighting and emergency generating equipment.

The funding is a combination of grant and soft loan, with $1.64M being given as a grant; the remaining $2.51M will be received as a concessionary loan to be paid back at a nominal rate of 3 per cent per annum for 13 years, with a three-year grace period.

According to Ambassador Lorne McDonnough, Chief Executive Officer of the CDF, the CDF is mandated under Article 158 of the Revised Treaty of Chaguaramas to assist disadvantaged member states to develop their infrastructure critical to their participation in the CARICOM Single Market and Economy (CSME).

“A modern airport is one such structural amenity and it is for this reason that I am here to ratify the CDF’s contribution to this effort,” Ambassador McDonnough explained.

He added that the plan of having an international airport was a crucial initiative to this country achieving its developmental goals.

“I have no doubt that the new airport will open a corridor for merchandise trade as well as the movement of persons,” he said.

The CDF’s CEO further explained that the potential impact on this country’s economy, once the enabling policies were properly implemented, could grow exponentially.

“The CAP that is being signed here is a manifestation for the cohesion and resilience which is the heart of Chapter 7 in the revised Treaty of Chaguaramas,” McDonnough added.

This is why it is so crucial for CARICOM member states to meet their requirements to the Fund, he explained.

He made an urgent appeal for member states to meet their commitments so that the CDF can continue to assist in critical initiatives of developing member states.

Dr. Gonsalves, in his address, reminded regional leaders that the CDF was a treaty obligation, adding that the compensatory mechanism, the CDF, was conceptualized to be in the range of $130 million, but that it was nowhere near that.

“Some feel that we are at the end of the cycle and that is the end of play, but that is not the case at all – everybody has to put money,” Gonsalves said.

“I would love to get more money from the CDF, only that it’s not available because of lower capitalization of the fund,” he continued.

As a consequence, the prime minister said that he would be looking to the CDF for more funding.

“When the next cycle begins, you will find St. Vincent and the Grenadines at the head of the queue,” Gonsalves said. (DD)