International organizations increase support to SMEs
Several international organizations maintain their support plans for Caribbean countries. In the first days of August, the Inter-American Development Bank (IDB) announced a loan for US$200 million dollars for the Bahamas with the objective of promoting the environmental sector, with which SMEs will be able to obtain resources to maintain their operation.
According to the agency, the project will improve and modernize the business environment by increasing the transparency and governance of capital markets and facilitating the business licensing process for low-risk companies. It will also support the continuity of MSMEs and the strengthening of their technical capacities in the short and medium terms.
Likewise, the IDB has also reinforced its plans to support Haiti as part of the recovery process this country is facing from the pandemic. Among other measures, it approved the reallocation of US $27 million of the undisbursed balance of the country’s current investment portfolio.
The IDB explained that these resources will strengthen the immediate response program to contain and control the virus and mitigate its impacts on the Caribbean country.
On the other hand, the International Finance Corporation (IFC) granted US$60 million to the Dominican Republic private sector, for loans to support SMEs that have been affected by the covid-19 pandemic.
These resources will be channeled through the private sector in order to reduce the limited supply of credit to SMEs in the Dominican Republic, which has further deteriorated due to the pandemic.
Also in the Dominican Republic, the Pioneer investment fund management company will open a development fund for $2.5 billion for various productive sectors, including SMEs. According to the firm, this strategy seeks to become a financing alternative for companies that historically have not get accessible alternative resources to help them grow.