Dominica has committed $ 27,795,988 aimed at providing financial assistance to the country’s small business sector.
The agreement which was signed on Monday March 7 2022, established a new credit facility for Micro, Small and Medium Enterprises (MSMEs).
Loans under the new credit facility will be offered at 3.5 percent per year, with borrowers receiving a grace period of six months on the payment of the principle and interest and ten years to repay.
Prime Minister, Hon. Roosevelt Skerrit stated that this facility is the result of a promise made to the sector a few years ago.
“The agreement is in respect to a promise I made to the MSMEs in fiscal year 2020/2021 and a manifesto promise of the 2019 General Elections. Today this promise is manifested, because as I have always said despite the unforeseen and regular economic shocks we contend with as a country this Government always keeps it promises.
Hon. Skerrit added that this administration understands the importance of the small business sector and the impact it has on the economy.
“This facility provides an avenue for them to invest and expand their enterprises, create employment and contribute to the growth in the economy. This Labour Party led Government understands the importance of the contribution of MSMEs to the Dominican economy. We believe that the injection of funds into this sector will positively impact small business activity and touch the lives of the common man in every village in every part of Dominica,” the Prime Minister noted.
Acting Permanent Secretary in the Ministry of Tourism, International Transport and Maritime Initiatives, Ms. Lisa Valmond stated these funds will assist the MSMEs with their recovery post covid-19.
“The aim of this credit facility is to provide financial support to MSMEs which will assist them in terms of their financial sustainability and economic recovery especially in light of covid-19. Government is committing an amounting of twenty seven million, seven hundred and ninety-five thousand, nine hundred and eighty-eight dollars ($27,795,988) for providing financial assistance to MSMEs and this will administered by the AID Bank for unlending to small business,” Ms. Valmond stated.
Meanwhile, Acting Minister for the Ministry of Tourism, International Transport and Maritime Initiatives, Hon. Chekira Lockhart-Hypolite stated that the new credit facility shows Government’s commitment to the growth and expansion of small business.
“This initiative signals Government’s awareness of the potential growth of these small businesses, as it will boost household incomes, employment and the economy. The signing of this agreement emphasizes the Government’s pledge to create the enabling environment to facilitate the expansion of the small business sector and the strengthening of our micro, small and medium sized business,” Hon. Lockhart- Hypolite stated.
General Manager, Ms. Marie-Therese Johnson thanked the Government for the facility saying that it will bring numerous benefits to the small business sector.
“On behalf of the Board of Directors, management and staff at the AID Bank, I express profound thanks for this new line of credit that we are receiving which is geared for Micro, Small and Medium Enterprises sector. The AID Bank is confident that this new line of credit will favorably impact employment creation, export substitution, sustain livelihoods and increase revenue and foreign exchange earnings,” Ms. Johnson noted.