IMF activates credit lines for SMEs in the Caribbean

| June 29, 2020 | Articles

Businessman calculating and checking articles of agreement

The strong impact on the economic activity caused by the Covid-19 pandemic has led several international organizations to activate supports for Latin American countries.

In the case of the Caribbean countries, according to information released by the International Monetary Fund (IMF), direct measures have been launched for countries such as the Dominican Republic, Jamaica and Haiti, which are especially aimed at strengthening health services and continuing the operation of companies.

For the Dominican Republic, for example, the IMF granted fast financing lines for US $650 million dollars.

According to the international organization, this line of credit seeks to fulfill urgent payment needs arising from the outbreak of the Covid-19 pandemic, while providing authorities with timely resources to mobilize essential health expenses related to the disease, as well as to support the vulnerable population.

Similarly, the IMF granted fast lines of credit in the amount of US $520 million dollars to Jamaica and US $111 million dollars to Haiti, where resources are also intended to support governmental tax measures been applied to preserve employment and business continuity.

In other countries, such as Antigua and Barbuda, the agency in charge of supplying public services agreed to stop all water and power disconnections to homes for a period of three months. Likewise, during April, May and June, the cost of electricity will be reduced by 20%, in light of the decreasing population resources to pay for services every month.

In the Bahamas, the government set aside US $4 million dollars to provide food and social support to citizens that lost their jobs due to the health emergency.

Finally, it is worth to highlight a short-term fund of US $20 million dollars set by the Bahamas government for small and medium-sized enterprises whose operations have been affected in recent months.