ST.GEORGE’S, Grenada – DESPITE opposition from the New National Party (NNP), the Grenada Parliament passed the Government Authorisation Loan Bill 2009 which allows the government to borrow EC$20 million from local commercial banks.

Spice Grenada reports that the participating banks are FirstCaribbean International Bank, Bank of Nova Scotia, Grenada Cooperative Bank Limited, Republic Bank (Grenada) Ltd. and RBTT Grenada. Each bank will provide the government with $EC4M at a maximum interest rate of nine percent per annum.

Finance Minister Nazim Burke said the money would be channelled towards economic and social projects the government views as being crucial to sustaining jobs in light of the global economic meltdown. These projects include “[assisting] farmers, road workers, young people, patients on dialysis treatment...and for many other activities”.

According to Burke, the loan will be repaid by linking it to the taxes that banks are “required to pay in the normal course”.

Opposition Leader and former Prime Minister Dr. Keith Mitchell slammed the motion, calling it “unrealistic” and suggested that the funds be instead used for road programmes and the completion of the St. George’s Market Square project. He also blasted the government, saying that by approaching Parliament for a loan two months after the presentation of the 2009 Budget, people’s lack of confidence in the current administration would further decrease.

Additionally, from an economic viewpoint, Mitchell voiced his displeasure at the government’s removal of these funds from financial institutions in the current, economically-depressed climate. He stated that the move would reduce economic activity and shrink their already limited resource base.