The Government of Saint Lucia continues to balance the needs of the country and the financing for essential COVID-19 pandemic related health emergencies and economic and social recovery. Prime Minister and Minister of Finance Honourable Allen Chastanet moved a motion in Parliament Tuesday 21st July 2020 to borrow the sum of US $10.7 million from the Caribbean Development Bank (CDB) for this purpose.

“In addition to losses in revenue, the impact of COVID-19 has placed added pressures on the Government’s expenditure, as we have had to undertake additional expenditures to strengthen and expand our healthcare systems to mitigate the spread of the virus,” Prime Minister Chastanet said. “The Government has had to fund the operations of isolation and quarantine facilities, the accelerated transition from Victoria Hospital to OKEU Hospital, the rehabilitation of the Victoria Hospital into a Respiratory hospital, hosting the Cuban Brigade of Doctors and Nurses, amongst other expenditures while having to honour usual governmental commitments ”

The CDB is a key development partner of Saint Lucia and continues to provide critical support to the Government of Saint Lucia in periods of distress. The COVID-19 pandemic is one such event, as this global pandemic has caused unprecedented distress to individuals, businesses, and economies; locally, regionally, and internationally.

According to the Prime Minister, the pressures on the operations of central Government remain and is now compounded with the obligations to respond to the ongoing pandemic. Daily, tough decisions are made to prioritise initiatives, protect the nation, and sustain economic and social activity.

“We are to meet our financing needs without directing resources away from the critical social and economic recovery needs. It should be noted that the terms of the loan are concessionary, at 1%, with an appropriate grace period, which will allow us as a country sufficient time to recover, before repayments are required.” Said Minister of Finance Honourable Allen Chastanet, he added “Given that this is a concessionary loan with a low interest rate and an extended maturity profile, its inclusion into the existing debt portfolio will have a minimal effect on our financing cost and risk profile.”

This loan will permit the Government to preserve fiscal space and allow for the financial resources that would have been required for debt servicing to be directed to financing other immediate needs of the country, in responding to the COVID-19 pandemic and resuscitating the economy.

The Prime Minister explained to Parliament the specifics of the loan and responded to the concerns from the Opposition. For the full explanation visit: https://www.facebook.com/SaintLuciaGovernment/videos/2740430652859148