BASSETERRE, St. Kitts – A much needed injection of funds was acquired by the St. Kitts and Nevis Development Bank with the view of providing finances to persons seeking business loans.
This disclosure made by the bank’s General Manager, Lenworth Harris, who extended an invitation to persons who have viable business ideas to come forward and access loans.
Harris was speaking at a press conference on Friday (Dec. 17) in his company’s conference room, where the local bank had secured an US$8M loan from the European Investment Bank (EIB).
“We would like persons out there who have business-related ideas that can be viable to come forward, as we would like to offer then the financial assistance that they need in making those business ideas successful,” he declared.
Harris said the loan from the EIB would aid in promoting growth, employment, competitiveness and economic diversification in the Federation, as well as ensuring there is continued availability of public and private sector finance during the current global economic crisis.
Commenting on the new initiative, Harris pointed out that with the Federation is feeling the squeeze of the economic challenges and that the credit offered would help in strengthening society.
He named a number of sectors that would be able to access financing easily.
“The package supports small and medium sized enterprises (SME) as part of the European Investment Bank’s priority focus on private sector development. Projects in the manufacturing, industrial, agricultural, infrastructure, energy, health, education and tourism sectors will benefit from easier access to finance,” he said.
Harris noted that renewable energy and energy efficiency projects would benefit from a dedicated US$1M component and also from an interest rate subsidy to facilitate investment in these sectors. He went on to say that the EIB recognises the importance of working closely with commercial and development banks from around the Caribbean so that they could continue lending to small to medium enterprises during difficult financial conditions.
Head of the Regional Representation in the Caribbean, Yves Ferreira said it was the fourth time in the Development Bank’s history that it had received credit from his organisation, while describing their relationship as a longstanding one.
“Indeed, with the signature of these agreements for a total of US$8M, we are doubling EIB’s lending to the Development Bank of St. Kitts and Nevis. But, more importantly, at the EIB we are very much convinced that micro, small and medium size companies are vital engine of economic growth in the Federation. Thus, facilitating access to term finance to this type of enterprises is critical,” he said.
He described the Development Bank as having a leading position and expertise in SME Financing, noting that the bank’s ability to offer technical assistance to its clients is the best adequate partner for this endeavour.
“Projects to be finance by DBSKN are expected to improve the competitiveness of SKN’s key economic sectors, as well as to contribute to economic diversification. But with this new facility, we also intend to be innovative and forward-looking by establishing a US$1M subsidised window for RE and EE investments as a way to contribute to most vital climate change mitigation,” he stressed.
Consequently, Ferreira added, at a time of challenges for the St. Kitts and Nevis’s economy, the effects of the sub-projects should be reflected in improved growth, employment, balance of payments position, tax revenue and cleaner energy.
Ferreira disclosed that the EIB, the European Union’s long term financing institution, has been present in the Caribbean for almost four decades supporting economic activity in the region with loans and equity investment worth over EUR 1.3 billion (US$1.7B).
Ferreira said they are focusing on two particular areas - the financial sector of which the Development Bank is an example, and infrastructure.
“In this sector, back in 1994, the bank part-financed with a EUR 2 million loan to the government of the Federation the urgently needed extension of the runway of the Newcastle Airport in Nevis,” Ferreira added.
He stressed that at the EIB they are looking forward to the success of this line of credit and to being of continued support to the Federation’s economic development through the financing of sustainable investment.
Meanwhile, Chairman of the Board of Directors at the Development Bank, Elvis Newton applauded both institutions and noted that it was a win-win situation for all. He said the credit provided is very timely and expressed confidence that the bank would be able to help businesses in stabilising themselves during this very difficult period.
“I am very happy with the line of credit given and would like to commend all involved in making this possible. At this very difficult period, any assistance and injection that can be provided to small and other businesses would be greatly appreciated, as we recognise that helping with the establishment of new businesses during economic difficulties helps in moving the society out of the challenges that it is faced with,” he said.
