BASSETERRE, St. Kitts – GENERAL MANAGER of St. Kitts and Nevis Development Bank, Lenworth Harris has reiterated his appeal to business owners to come forward and access loans to enhance their enterprises.
Harris had first issued this appeal in mid-December 2010 after the bank had secured a US$8M line of credit from the European Investment Bank (EIB).
This, he stressed would aid in assisting the Federation in combating the effects of the present recession and financial difficulties.
“During difficult times like these, it is important to establish businesses as it will help in providing employment and also assist in reducing the economic impact.
Therefore, the Development Bank firmly believes that with more new businesses coming on stream and existing businesses being given assistance to assist in keeping their businesses open, it will help in taking the Federation out of the challenges and difficulties if faces.”
Harris said the monies that the bank has secured would be a fillip to St. Kitts and Nevis’s business community.
“This facility is being made through the Development Bank and the European Investment Bank’s credit in aiding in promoting growth, employment, competitiveness and economic diversification in the Federation.
“The package supports small and medium sized enterprises 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 added 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 this sector.
“With this line of credit, it continues to broaden the scope for us and it is the fourth time that we are securing a line of credit from the EIB,” he told this media house.
He said that with the economic challenges being faced by many in the Federation, the credit offered would help in strengthening society, adding that the repayment percentage would be much cheaper than what the bank currently charges on loans.
This was confirmed by Chairman of the Board of Directors Elvis Newton, who said, “We are still working out the interest rates, but what I can say is it would be cheaper than that currently being offered.”
He disclosed that the bank would be reviewing all submitted business proposals in an effort to determine who qualifies for the EIB loans.
“We will be reviewing the various proposals so as to determine the proposals that are eligible for the EIB loans.”
Meanwhile, Head of the Regional Representation in the Caribbean, Yves Ferreira had described the relationship between the two financial institutions as longstanding one, noting that “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, he added, “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.”
