On Thursday 7th February 2019, the Caribbean Development Bank (CDB) held its Annual News Conference at the CDB Headquarters in Barbados. The press conference, attended by representatives from various regional media houses, was hosted by the President of the Bank, Dr. Warren Smith, Dr. Justin Ram, Director of Economics and Mr. Daniel Best, Director of Projects.
The conference highlighted the region’s socio-economic status of the borrowing member countries (BMCs) over the 2018 period.
Harrowing after the damages of the 2017 Atlantic Hurricane season Anguilla saw a 40% fall in visitor arrivals which resulted in a -2.4% decline in GDP. The island fiscal performance rose due to the recovery related expenditure plus the decline of tax revenues. Dr. Warren Smith highlighted in 10 of the BMCs saw a decreased in debt. However, 9 exceeded, surpassing the international bench mark of 60%.
CDB has projected real GDP growth for 2019 in the region by 2.0%, with Anguilla forecasted at a 3.9% increase. BMCs are therefore urged to tackle limiting challenges of climate change, widening fiscal deficit and high public debt plus high youth unemployment to achieve sustainable growth.
“The bank approved projects, totalling US$ 352 million dollars with disbursement, amounted to, $ 280 million dollars, representing a 20% increase compared to2017,” Dr. Smith stated. “In 2018 CDB supported countries in building climate and economic resilience; We directed considerable resources towards countries seeking to ‘build back better’. The Bank provided financing to Anguilla of US $14.9 million. ”
Dr. Ram commented on the Damages from Hurricane Irma which amounted to 100% GDP for Anguilla and as such CDB allotted an approved emergency assistance of US$ 5.6 million in a support loan to the Government of Anguilla to meet external debt payments and a Policy-based loan of $US 9.3 million was implemented. “This was the first of proposed programmes to implement reforms which aim to restore physical sustainability and increase resilience against natural disasters, “stated Ram.
Meanwhile, the Barbados-based Caribbean Development Bank is looking at two ongoing financial projects which the Government of Anguilla has applied for assistance.
One is a proposed non-refundable grant of US$5 million under the Mexican Fund through the CDB to boost regional infrastructure. The other relates to a loan from the CDB to construct a new campus for the Anguilla Community College and other facilities. Both matters were inquired into by Ms. Tiffany Moore of The Anguillian newspaper.
In the interview with Mr. Daniel Best, Director of Projects, in relation to the Mexican Government’s grant, The Anguillian was told that the application was made by the CDB which was now waiting to hear back from the Government of Mexico and then to advise the Government of Anguilla on the matter. “We submitted the application on behalf of Anguilla and the process is that Mexico will then give us the go head for the funds to be [made available] to the Government of Anguilla,” Mr. Best explained. “Following receipt of confirmation from the Government of Mexico, we will take the project forward to our Board of Directors. We will then do our appraisal process of designing the project and will take it forward.”
With respect to the Anguilla Community College Ms. Deirdre Clarendon, CDB’s Chief of the Social Sector Division said the Bank was trying to find additional resources to complete the project which was submitted at almost twice the value of the loan (originally US $5 million).
She stated that in order to move forward the project, it had been divided into two phases, one dealing with the rehabilitation of the centre for the TVET training and the second phase the rehabilitation of the administrative building. She added that this was one way of trying to move the project forward at this point in time.
