Robert Hart, Staff Reporter
Grenadian Prime Minister Dr. Keith Mitchell. - FILE
GROS ISLET, St. Lucia.
THE INTER-American Development Bank (IDB) has signed an agreement with the Caribbean Development Bank (CDB) to provide a US$10 million low interest loan to assist in the redevelopment of the Hurricane-ravaged island of Grenada.
The agreement was signed during the second day of the 26th regular meeting of the conference of Caribbean Community (CARICOM) heads of government at the Sandals Grande Hotel, Gros Islet, St. Lucia.
IDB President Enrique Iglesias and CDB President Compton Bourne signed the documents while Grenadian Prime Minister Dr. Keith Mitchell witnessed the procedure.
But while the agreement is indicative of some level of continued support for Grenada during its difficulties in the aftermath of Hurricane Ivan which struck the island late last year, Dr. Mitchell yesterday maintained concern that his country may have been forgotten by the international community in the wake of the Boxing Day tsunamis that devastated Asia.
"The resulting effect of this is that many of the countries that promised significant aid did not come through and lots of the resources went to Asia," Prime Minister Mitchell said.
He added: "While we understood the need for, given the serious disaster, the loss of life and property in Asia, the problem lies in one basic fact...our economy was devastated far more significantly than that of the Asian countries."
Dr. Mitchell cited as an example the complete destruction of Grenada's nutmeg industry, the second largest supplier of nutmeg in the world.
According to the Grenadian Prime Minister, almost 80 per cent of nutmeg trees were wiped out in the island, while Indonesia, the number one supplier of nutmeg, may have lost "two or three nutmeg trees".
He said that Grenada suffered almost 200 per cent losses to GDP while the effect of the tsunamis on Asia was about four per cent losses to GDP.
Dr. Mitchell acknowledged, however, the US$42 million of assistance provided by the United States.
The IDB loan for Grenada's reconstruction comes from the bank's special operations fund, and is for a 40-year term, with a ten-year grace period. There is a one per cent interest rate during the grace period and two per cent thereafter.
The resources are to be used to finance investment projects in the private sector for the revitalisation of businesses, preparation of housing sites and services on properties with clear titles, and reconstruction of public sector infrastructure facilities, including roads and bridges and installations critical to protecting the environment.
The agreement was signed in anticipation of the CDB Board's approval of the loan next week.
