$25 million credit support to Dominica's COVID-19 response: World Bank

Dominica: On Thursday, the World Bank's Executive Board of Directors approved the US $25 million credit for the first COVID-19 response and recovery development policy credit for Dominica. 

It is the first budget support operation for Dominica by the World Bank, and it is the first in a series of two credits that are paid out quickly. The operation aims to support Dominica's COVID-19 response to save lives, livelihoods and jobs, while laying the groundwork for longer-term economic recovery. This is in line with the national strategy for the development of resilience and COVID-19.

"The pandemic has once again emphasized the importance of increasing our country's resilience. The Dominican government is committed to saving lives, protecting livelihoods and retaining jobs, and then to strengthening fiscal policy, public financial management and debt transparency for a strong and resilient recovery," said Roosevelt Skerrit Prime, Minister of Dominica. "The government is fully committed to the reforms in this operation, which are timely and will help Dominica to rebuild better in a sustainable way."

"The COVID-19 pandemic took place at a time when Dominica's economy was still recovering from previous disasters," said Tahseen Sayed, Director of the World Bank for the Caribbean. “The World Bank was proud to be the first one of Dominica's partners to repair the island after the devastating hurricane in 2017. Today we are delighted with the very first funding of the World Bank's development policy in support of the country's efforts to recover from the extraordinary socio-economic consequences of the COVID-19 pandemic.”

This development policy credit includes measures to support the eventual reopening of the tourism sector, while protecting public health, including the adoption of standardized COVID-19 testing protocols, and the adoption of health protocols for the tourism and hospitality industry. Employment protection initiatives include tax reforms that encourage businesses to retain their employees. The operation also includes policy reforms to strengthen the country's recovery by improving fiscal policy, public financial management and debt transparency for a resilient recovery.

The funding, which comes from the International Development Association (IDA), is interest-free with a term of 40 years, including a grace period of 10 years.

World Bank Group COVID-19 Response:-

“The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, rapid action to help developing countries strengthen their pandemic response. We increase disease monitoring, improve public health interventions and help the private sector continue to operate and sustain jobs. Over the next 15 months, we will use up to US $160 billion in financial aid to help countries protect the poor and vulnerable, to support businesses and strengthen economic recovery, including $50 billion in new IDA resources in grants or extremely beneficial terms.”