SVG signs $8.8 million loan agreement with CDF
December 7, 2012

SVG signs $8.8 million loan agreement with CDF

Prime Minister Dr Ralph Gonsalves has signed a memorandum of agreement with the CARICOM Development Fund (CDF) for an EC$8.8 million loan to St Vincent and the Grenadines.{{more}}

The money will be used to purchase equipment for the continuing construction of the international airport at Argyle.

Ambassador Lorne McDonnough, chief executive officer of CDF, indicated that the loan supports the acquisition of additional vehicles

and equipment to transport aggregate material and base-laying equipment to the worksite.

The ambassador also stated that this loan would be delivered to the International Airport Development Company (IADC) in two tranches and follows similar agreements of the previous loan of US$4.2 million.

“[The loan] is offered on terms, similar to the initial loan, namely at a nominal interest rate of three per cent per annum for 12 years with a grace period of two years on interest,” McDonnough said.

Meanwhile, Gonsalves referred to the Revised Treaty of Chaguaramus, which established CDF to provide assistance to Caribbean Community member states.

“It is specified in the Treaty for funds to go to disadvantaged countries, regions and sectors,” he said.

Gonsalves further stated that SVG is included in the category of disadvantaged countries and that the country contributes to CDF because the benefits are great.

The prime minister said he was pleased with the fund’s swift response to the second application and expressed happiness with the reactions of the Board of Directors when they saw the project.

“When the Board of Directors came … they were very pleased. In fact, they were amazed of a project of this kind being undertaken in the manner in which we are undertaking it,” Gonsalves said. (BK)