Dominica’s Agricultural, Industrial Development (AID) Bank made EC$2.3 million in net profit for the financial year ending June 30 2011, according to its chairman Ambrose Sylvester.
He said the profit made was almost 50 percent (47.24 percent to be exact), with the bank receiving an upgrade in its credit rating “from bb+ to bbb- by the Caribbean Information Credit Rating Services Limited”.
Sylvester made the disclosure at the bank’s annual general meeting at the Fort Young Hotel on Wednesday, calling it “a clear indication that the bank has achieved tangible improvements in a number of critical areas of its operations”.
According to the bank chairman the financial institution “performed creditably” for the period under review.
He made reference to programmes aimed at fostering growth and increased lending on the part of the AID Bank.
Among the figures he disclosed – that loan approval by the bank totaled $36.33 million, something Sylvester described as the second highest level recorded in the bank’s 40 year history.
He also disclosed that disbursement of loans for the period under review totaled $31.29 million, “the highest level of disbursements recorded in any one year in the history of the bank”.
Also singing the praises of the AID Bank was Prime Minister Roosevelt Skerrit, who suggested that making a profit should become a habit for the bank.
He also pointed to a “dramatic reduction in interest rates for private sector investment” in the last few years from about “12 percent to an average of 6.5 to 6 percent per cent”.
Prime Minister Skerrit made it clear that he expects the actions of the AID Bank to be “in sync with government policy”.
He said he expected the bank to play a role in the ultimate goal of reducing poverty by encouraging private sector growth.
The prime minister also referred to the need for greater accountability and transparency, while reiterating his advice to borrowers to pay back monies loaned to them by the bank.
He had some advice for those not willing to do that.
“If you have no intention of paying back to the bank, my respectful advice is that you should stay away from the AID Bank altogether,” the prime minister said.
All these students that are commenting on the high interest rates I see that you all are now more educated since u all seemingly never checked the interest rates before u all took the loan.
Stop doing like the bank increased the rate. U agreed to that interest rate when you got your student loan.
Whilst I will agree the rates would be better if reduced please note that the bank also lends at a higher interest rate than a Commercial Bank.
POOR PPL CHILDREN REALLY HAVE NO CHOICE
you have grace period before you start paying your loan. you get time to get a job
/waves at backup singer
of course they’ll have profit, i think it’s probably higher than that…. with the high interest rates on student loans that never seem to end……ugh
tell me about it. i paying a student loan and it just not going down. AID bank toooo greedy. dey abusing poor ppl
You new the interest rate before you took the loan didnt you?
it would be good to check the profit magine of other A I D banks i am sure they are not doing as good in this hard economic times
Congratulations AID Bank. I too, look forward to a reduction in the interest rate on student loans.
I also want to ask all delinquent student loan borrowers to please pay back their loan. That will help out the rest of us who want student loans. If you all don’t pay then student loans will continue to be high0-risk and the rate will never go down.
I think that the AID bank, should introduce special loans for non=-resident Dcan business owners, with special interest and investments.
I think non-residence wanting to do business in Dominica should provide their own funding.Once they have receive citizenship and their business has been operations for sometime, hiring x amount of locals, then, they should qualify.
High intrest rates are detterents to foreign investors. So do we want the investments or not?
I agree – a non-resident who wants to come to Dominica should come to invest with their own money. This will eleminate a flood of so call investors to Dominica. If you are coming – you should come with something GOOD to contribute not ask of Dominica to help you do business.
Alas.!!! Student loan they using to kill people!!!!
is true
“STudent loan they using to kill people”
you talkin like someone knock on your door and just hand you a student loan to pay. You took your self and sign yourself to an agreement and now you dont want to pay. Kinda haird to believe you’re a student talking like that
Lower interest rate = greater amounts of loan applicante = greater number of repayments = higher profit margin!!!!!
In your business quantity counts..now lets get the mortgage interest down i need to build my house lol
Was saying the very same time. Reduce interest rate on my student loan!
*thing* sorry
dey must make all dat profit for instand dey killin ppl to pay back a lil student loan
2 million is all that profit? That is the mentality of our people?
Maybe if you were one of us paying excessively high interest student loans…you would know what to say!!! Stupes!!!
ungreatful
if you didnt want to pay? why u agree to pay?