The Hon Prime Minister and Minister for finance, Dr. Roosevelt Skerrit, has endorsed the Dominica Agricultural, Industrial and Development Bank, AID bank as its primary source of lending for Government financing.
The Hon Prime Minister was speaking at a meeting with manufacturers at the State House Conference Centre last week.
“We use the AID bank because in my respectful view, contrary to what some of you may think, it is a better help for you. If we use other financial institutions they have administrative costs; they have certain costs which we have no control over but I can say to the AID bank ‘you can absorb this because your mandate is to help grow the economy,’...” he said.
He said further that Government is open to discussions with other banks but the primary focus is the AID bank.
The nation’s leader stated that the AID bank has a history of conducting such activities on behalf of the state.
“Without a development bank in a country with a small economy like ours and relying solely on commercial banking to finance development of a country, we would be in trouble and therefore it is in all our interest to ensure the viability and the sustainability of the bank. This is why as Minister of Finance the record is there that I have authorised tens of millions of dollars to be made available to the AID Bank to on-lend to the private sector...because that’s where we can exercise a level of flexibility,” he said.
He further explained that commercial banks do not make the same provisions for small businesses as the AID bank.
The finance minister advised the development bank to have more consultations with manufacturers to iron out issues they might have with conducting financial transactions.