CDB Approves Country Strategy Paper and 2 Loans to Belize
On December 14, 2006, the Board of Directors of the Caribbean Development Bank (CDB) at its meeting in Barbados approved the Country Strategy Paper for Belize for the period 2007 - 2009. Also, the Bank approved a USD 25 million Policy Based Loan for Belize and a USD 12.6 million loan to finance the upgrading of the Placencia Road.
The main objectives of CDB’s Strategy for Belize during the 2007-2009 period are to enhance sustainable economic growth by means of the following:
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supporting attempts to correct fiscal and external imbalances;
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financing investments that are critical for enhancing growth;
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lending to eligible private sector entities;
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financing critical social development projects.
Also, CDB’s assistance will look for good governance promotion and fostering inclusive social development.
The Policy Based Loan amounts to USD 25 million. It is comprised of:
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USD 15 million from CDB’s Ordinary Capital Resources (OCR) (this portion of the loan is to be repaid at a variable interest rate which is currently 6.25% per annum, in 20 years, including a grace period of 5 years);
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USD 10 million from CDB’s Special Fund Resources (SFR) (this portion of the loan is to be repaid at an interest rate of 2.5% per annum, in 25 years, including a grace period of 5 years).
The Policy Based Loan is aimed at supporting the efforts of the Government of Belize to address the correction of the fiscal and external imbalances. It should help the Government of Belize close the gaps over the short to medium term while implementing corrective measures, which include the restructuring of the debt, the reform of tax regime and the control of public expenditure.