CDB Provides EC$27 Million Line of Credit to Grenada

The Caribbean Development Bank has entered into an arrangement with the Government of Grenada that will result in start-up businesses and students getting access to financing.

Health Minister Nickolas Steele made the disclosure during Tuesday’s post-cabinet briefing. He said that almost half of this credit line of US$10 million will be allocated to entrepreneurs.

“Of that amount, EC$13.5 million is for business loan start-ups and existing businesses. Inclusive of this is, EC$1.35 million is specifically earmarked for renewable energy and energy efficiency initiatives,” said Steele, who is also a member of Government Economic Investment Committee. Loans can range from EC$8,000 to $945,000, at an interest rate of 8.5% interest per annum. Repayment period will be 12 years inclusive of a 3-year grace period.

Steele said that EC$9.45 million will go towards general student loans. “Terms: 8% per annum, 12 years repayment of interest only during the period of study,” said Steele, who explained that EC$1.35 million will be allocated for special student loans, for those who are described as vulnerable students. Students in that category will pay an interest rate of 5 % during studies, and 7% upon completion.

The credit line will also provide for home ownership, with EC$2.7 million going toward home mortgages for lower middle-income citizens. A maximum of EC$180,000 will be loaned to a homeowner who has a collective salary of approximately $4,000.

The credit line will be accessed through the Grenada Development Bank. The decision by CDB to disseminate the money follows a meeting of the CDB Board of Governance, which was held 20–21 May in Barbados. Prime Minister Dr Keith Mitchell was among the regional leaders who attended the meeting.

Article Footer 468x60

Facebook Comments

Related Posts