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Govt seeking $50M loan


Govt seeking $50M loan

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THE BARBADOS GOVERNMENT is seeking to borrow US$25 million from First Citizens Bank Limited.

Minister of Finance Chris Sinckler said today in the House of Assembly that the money is to be used to pave the way for Barbados’ membership of the Development Bank of Latin America, the Corporación Andina de Fomento (CAF), which costs US$50 million.

According to Sinckler, once Barbados became a member of the regional organisation, it would have access to loans between four and eight times the membership fee, which really represented an investment in the bank.

Sinckler was piloting a resolution seeking approval from the House of Assembly for Government to borrow the money from the bank.

Leader of the Opposition Mia Mottley said the Barbados Labour Party supported the idea of the country becoming a member of CAF, but complained that accessing the loan could cost the country an additional US$2-3 million.

She also charged that some of the loan conditions were questionable, including one to the effect that if Barbados’ credit rating was downgraded the loan would become more costly. (TY)