AID Bank to Become Financial Engine for Dominica’s Growth Strategy

Prime Minister Roosevelt Skerrit says the Agricultural, Industrial and Development Bank of Dominica (AID Bank) is being reconfigured and reenergized to become the financial engine for driving the country’s growth strategy.

Prime Minister Skerrit says, with Governments endorsement, the AID Bank is mobilizing funding for financing development activities on appropriate terms over the next five years.

He says the financing will target viable investment opportunities in the productive, infrastructural and social sectors.
“Already, and with Governments assistance, the AID Bank has secured a line of credit from the Bank of Economic and Social Development of Venezuela (BANDES). The purpose of this line of credit is to provide financing for projects in the tourism, agriculture, agro processing and telecommunications sectors. You will recall that I stated in the budget address that US$60 million would be raised from the Government of the People’s Republic of China for investment in a major tourism project. An advisory group has proposed that these funds be used to develop a first class marina hotel, village and shopping centre in the area of the Cabrits known as Sunshine Village. Soon, an artist’s impression of the proposed facility will be put on public display. Together, and with the involvement of stakeholders in Portsmouth and its environs, we must proceed with this project which will enhance the town of Portsmouth and improve our attractiveness as a tourist destination,” he said.

He said in order to streamline the processes preceding investment and project implementation, and to further stimulate economic activity, a Mutual Cooperation Agreement will be entered into between the AID Bank and the Invest Dominica Authority.

This arrangement he said will ease access to the bank’s resources by the private sector. The agreement has identified ventures that will be given high priority. They include; Resort colonies, as for example has been proposed for Hampstead; Fishing; Information and Communication Technology; Development of additional cruise ship piers; Tourism attractions; and Marinas.

“The AID Bank will soon introduce two facilities that will contribute an added dimension to the housing revolution which has made many Dominicans proud homeowners for the first time.

The first of these is the Graduated Payment Mortgage (GPM). The GPM is a mortgage on which the payment starts low and rises over time. Since the initial payment is used to qualify the borrower, the GPM may allow a borrower to qualify who would not normally qualify with a standard fixed payment mortgage. More details on this product will be provided by the Bank shortly,” he said.

The second initiative is to provide loans to many employees who are close to retirement and who occupy dwellings that are not now conducive to comfortable living.

According to him, the bank is giving favourable consideration to an initiative of the Ministry of Finance for a facility which would assist these homeowners to improve their dwellings.

“A comparable system to this is what the Americans refer to as Reverse Mortgages, where refurbishments are made to existing properties and the cost is carried forward and borne by the person inheriting the property. This is an exciting innovation that our people can look forward to in the very near future,” he said.