EIB to Provide a USD 10 Million line of Credit to AID Bank

Earlier today the European Investment Bank (EIB) agreed to provide a USD 10 million line of credit to the Dominica Agricultural, Industrial and Development Bank (AID Bank) to ensure continued availability of public and private sector finance during the financial crisis. The
European Investment Bank’s line of credit will promote growth, employment, competitiveness and economic diversification on the island of Dominica. Projects in the manufacturing, industrial, agricultural, energy, health, education and tourism sectors will benefit from easier access to finance.

The package is mainly geared to support small and medium sized enterprises as part of the European Investment Bank’s priority focus on private sector development.

Renewable energy and energy efficiency projects will benefit from a dedicated USD1.3 million component and will further benefit from an interest rate subsidy to facilitate investment in these sectors.

“The European Investment Bank recognizes the importance of assisting local commercial and developmental banks throughout the Caribbean so that they can continue lending during these difficult financial conditions. We have worked closely with Dominica’s development bank for almost 30 years and look forward to seeing the widespread benefits of this programmme in helping SMEs across the island. The dedicated assistance for renewable energy and energy efficiency projects recognizes the specific challenges faced by small island states” said Plutarchos Sakellaris, European Investment Bank Vice President responsible for Africa, the Caribbean and Pacific lending operations.

The chairman of the Dominica Agricultural Industrial and Development Bank, Mr. Ambrose M.J.Sylvester, in applauding the EIB’s timely financial intervention said that “this line of credit is extremely important to both the AID Bank and the government of the Commonwealth of Dominica at this time of challenges resulting from the global financial crisis and will greatly support the government of Dominica’s efforts towards job creation, foreign exchange earnings and growth and expansion of the local economy by making available financing on affordable terms to viable projects in the sectors which have been targeted.”

The European Development Bank operates in the Caribbean under the Cotonou Agreement. This line of credit is the first EIB project to materialize under the Caribbean Joint Action Plan that the European Investment Bank signed with the Caribbean Development Bank, Finance for Development (FMO), the International Finance Corporation and PROPARCO on May 19, 2010 in the Bahamas.