Chairman of the AID Bank, Martin Charles, has called on manufacturers who intend to make use of a new loan facility at the bank to make sure the funds are used for their intended purpose.
On Thursday August 24th, an agreement was signed by the government to lend the AID Bank $15-million at zero percent interest rate to on-lend to the Manufacturing Sector at an interest rate of 3 percent.
Charles told those present at the signing ceremony that although the facility was made available to the bank at zero percent, it remains a loan and borrowers must make good on their obligation to the bank.
“As we sign this $15-million loan facility for on-lending to the manufacturing sector, we wish to advise the manufacturers that whilst this is at zero percent to the bank, nonetheless it is a loan, therefore we urge all borrowers of this funds to make good on their obligations to the bank as the bank also has to build its loan obligation to the government,” he stated.
He urged manufacturers who access the facility to make sure it is used for its intended purpose.
“Based on the loan agreement the bank has relaxed its security requirements for accessing these loans, therefore, I wish to advise the recipients that the funds contracted must be used for their intended purpose,” he noted. “The bank will carry out periodic supervision visits to provide guidance when needed.”
Charles also stated that manufacturers will be provided with training to improve their business acumen.
“The work of the bank in providing concessional financing to the key productive sectors in Dominica remains a very critical and essential service,” he stated. “We wish to thank the government of Dominica for its continued support to the bank and [look] to other lines of credit for on-lending for infrastructure housing and education.”