Dominica: Govt signs MSMEs loan facility agreement with AID Bank

Roseau, Dominica: The Government of Commonwealth of Dominica has launched the Micro, Small and Medium Enterprises (MSMEs) loan facility at the AID Bank after signing the agreement to provide access to capital for business investment and expansion. On Monday, March 7, 2022, PM Skerrit launched the facility and stated that he encouraged business owners who qualify to take the opportunity to grow their business in a suitable manner.

He emphasized that the government understands the importance of the contributions of the MSMEs to Dominica's economy. He also had a word with the agro-processors, plumbers, electricians, farmers, fishermen, vendors, barbers, hairdressers, retailers, artists, and other entrepreneurs who ensure that economic activity is steady.

"We believe that this loan facility will aid the small business activity and impact the life of the common person in every village positively. It will also help them to uplift their business in every part of Dominica," underscored prime minister.

While outlining the significance of the ceremony, PM Skerrit noted that the signing ceremony is another representation of the commitment of the government to create greater opportunity for all citizens and to develop progressive policies which respond directly to their needs.

He further mentioned that the agreement signed with the AID bank holds much promise for many of the people who will be able to access financing to facilitate investments in business and enterprise, creation of jobs and new income streams.

PM Skerrit also highlighted that he made a promise in the election manifesto in 2019 to the micro, small and medium-sized enterprises, and now the promise is fulfilled and noting, "I've always said despite the unforeseen and regular economic shocks we can't contend with as a country".

He mentioned that the government had increased expenditures related to COVID management and response while revenues have remained below 2019 levels, so the government have made efforts to boost and build the mall enterprises.

"We had a call for assistance to bring the enterprise back to previous operational strength to expand and to prepare for the anticipated post-pandemic banks' bombs back in the economy, " underlined prime minister.

He informed that 27.4 million dollars from eastern Caribbean dollars from the Caribbean are developing banks for on-lending MSMEs through the AID bank. This will be offered at an interest rate of 3.5 percent per annum on the reducing balance.

PM Skerrit stated that borrowers would be given a grace period of six months on the payment of the principal and interest and a ten-year repayment too. The government in micro, small and medium-sized enterprises.

However, he also informed that in September 2021, the government placed an amount of six million dollars at the AID bank to lend to micro and small businesses.

"From 2020, the total amount made available by the government since man 2020, for lending to MSMEs on the very concessionary term is 34.4 million dollars. Further, the one million dollars recently pledged to the Dominican youth business trust, and the human resources support provided through the national employment programme," he added.

Due to all support of the mall business sector over the past years, small and medium-sized enterprises have fulfilled an even greater role in the economic and social development of Dominican presently, underlined PM Skerrit.

Further, Prime Minister outlined that the small business in Dominica witnessing upliftment as more of the young people are taking up entrepreneurship and displaying a high level of creativity and innovation.