EIB provides US$8 million to Development Bank of St. Kitts and Nevis

EIB provides US$8 million to Development Bank of St. Kitts and Nevis
by S. Coward

The European Investment Bank agreed to provide an $8 million line of credit to the Development Bank of St. Kitts and Nevis 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 Saint Kitts and Nevis.

According to EIB, the package supports small and medium sized enterprises as part of the European Investment Bank’s priority focus on private sector development. Projects in the manufacturing, industrial, agricultural, infrastructure, energy, health, education and tourism sectors will benefit from easier access to finance.

Renewable energy and energy efficiency projects will benefit from a dedicated $1 million component and will further benefit from an interest rate subsidy to facilitate investment in these sectors.

The European Investment Bank operates in the Caribbean under the Cotonou Agreement. This line of credit is the fourth 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, bringing EIB’s total contribution to the Caribbean region since May 2010 to $65 million.