ST. JOHNS, Antigua – ANTIGUA AND BARBUDA has received US$50M from the Venezuelan government, which will be used for the creation of a stimulus package and the provision of budgetary support.
Prime Minister Baldwin Spencer announced yesterday (Aug 13) that his government had been successful in obtaining financial assistance from the Hugo Chavez-led nation. The move comes approximately two months after his government signed onto the Bolivarian Alliance for the Peoples of our America (ALBA), a Chavez brainchild that seeks to deepen Latin American-Caribbean integration.
“I am pleased to advise that President Hugo Chavez signed the necessary paperwork to approve the immediate transfer of the full amount of US$50 million to the government's call account at the Eastern Caribbean Central Bank,” Spencer said. “This immediate and unconditional support from Venezuela can be attributed to the principles which underpin ALBA...as an alternative to competition, solidarity as opposed to domination, cooperation as a replacement for exploitation and respect for sovereignty rather than corporate rule.”
According to published media reports, a delegation from Antigua and Barbuda would travel to Venezuela next week to finalise arrangements. It is expected that US$25M will be taken as a grant while the next half will be repaid under loan conditions.
Finance Minister Harold Lovell divulged that US$35M would be used for budgetary support, and US$7M would go towards the development of an economic stimulus package focusing on the renovation and refurbishment of government buildings.
He added that US$6.5M would be spent on the enhancement of revenue administration and collection and expenditure management, while the remaining US$1.5M would be used to fund social safety net programmes.
Despite the Venezuelan package, Lovell said the government would still pursue assistance from the IMF and other financial institutions to tackle the “significant challenges” the country is facing.
Antigua and Barbuda follows in the footsteps of St. Kitts and Nevis as a recipient of Venezuelan assistance. In June, a US$10M loan was signed between the two governments.
SKN Prime Minister Dr. the Hon. Denzil Douglas revealed additional details in an interview later that month.
“The $10 million was the first tranche of the $50 million loan package that was in fact being negotiated...The whole idea was to help us refinance existing debt. It will take us another two years before we pay on [the loan], and in the meantime this $50 million could be used to help reduce the existing debt situation.”
Antigua News