Government of the Commonwealth of Dominica Website
Sunday, 16 December 2018

The Dominica Agricultural Industrial and Development Bank, the AID Bank, has recorded a net profit of $1.1m for the financial year ending June 30, 2012.

Chairman of the AID Bank, Martin Charles made the disclosure when he highlighted the major achievements of the banks during the bank’s 20th annual general meeting on Wednesday December 19, 2012..

He revealed that “Operations for this financial year recorded a net profit of XCD 1.01 million which was approximately 55.18% less than the net profit of XCD 2.35 million recorded at June 30, 2011.”

The Chairman of the Board of Directors said the year ended June 30th 2012 marked a major milestone in the life of the bank’s forty year operation.

“Over the past 40 years the bank has approved loans of XCD538.34 for economic and social development in Dominica. This includes over $86.14 million for agriculture, $106.43 million for services, manufacturing and transportation, $81.87 million for tourism, $122.90 million for housing, and $93.31 million for students, $39 million for personal lending, $6.50 million for infrastructure and equity investments of $2.13 million.”

The Chairman also reported that disbursements amounted to an average of eighty five percent of approvals or four hundred and fifty-five point eight six million dollars over the past four decades.

According to the Chairman of the AID Bank Board of Directors,” loans approvals over the past three years have amounted to $112.81 million or 20.95 percent of total approvals over the past 40 years while disbursements of $85.72 million over the past three years amounted to 18.80 percent of total disbursements over the entire period of the bank’s existence.”

The chairman also reported that during the year under the review the bank was able to approve 381 loans with a total value of XCD 34.56 while an estimated 826 jobs were created in the economy.

“Total disbursement amounted to XCD 33.37 million”. “This amount, the chairman revealed “was 6.6 percent greater than total disbursements for the period ended June, 2011 when XCD 31.29 million was disbursed.”

The chairman also noted that the year under review was also the third of the Bank’s five year strategic plan for the period 2009-2014 and in the face of continued uncertainty in the global environment the AID Bank continued to make a solid contribution to private sector growth.

“In the third year of the strategic plan the Bank took on some special projects of national significance with a view to improving the competitiveness of local industries on the eve of the creation of the single economic and financial space within the Organization of Eastern Caribbean States (0.E.C.S) scheduled for July 2013.”

Hon. Ambrose George who represented Prime Minister and Minister for Finance Hon. Roosevelt Skerrit  at Wednesday’s Annual General Meeting said the AID Bank will continue to be used as a key institution in Government’s efforts to facilitate private investment.

The Minister challenged the bank about the need to continue to make investment while at the same time preserving the integrity and status of the bank.

“The concern of this Government is that whatever we do must redound to the benefit of citizens. “He said “In this environment it is no longer enough to gauge our success by the number of loans granted or the value of loans disbursed. These are necessary targets but the real measure is where a greater number of loans or larger loans are converted to real economic activity and real poverty reduction, more jobs and greater  revenues to the state so that more goods and services can be provided to the citizens.”

The Minister said further that “ Our ability to achieve such results will require skill and innovation by the management and board of directors. It is always a delicate balance between the need to make investments while remaining prudent. We are however confident that the capacity is available within the board and the management to achieve these desirable objectives.”

The Minister commended the bank for its success in the last year and encouraged the institution to continue to push forward in order to meet all of its objectives. In doing so the Minister pledged Government’s continued commitment to the bank.

“The Government of Dominica maintains its commitment in supporting the work of the AID Bank. We are mindful that the loans obtained by the AID Bank are backed by a government guarantee and as such it is important that the lending policy of the bank takes this into consideration.”

The minister ended by saying that “Equally important is the ability of borrowers to meet their obligations to the AID Bank. I fully endorse the AID Bank’s effort to recover monies owed to it. If not collected it will be the taxpayers of this country who would be paying that bill which I believe is most unfortunate and unfair.”

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