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Government Backs NIC’s $20 million Loan To SLDB

During Tuesday’s Sitting of the House of Assembly, Prime Minister and Minister of Finance Philip J Pierre presented a motion detailing the intent of the National Insurance Cooperation(NIC) to loan $20 million to the Saint Lucia Development Bank (SLDB).

The money would go towards the Housing and Productive sectors.

The Prime Minister reiterated that the Saint Lucian government is not taking on a loan but would guarantee the loan in a gesture of support.

Parliament agreed to authorise the loan guarantee.

SLDB would borrow with the following stipulations:

1) the loan be paid back over 20 years, starting three years after the first disbursement of the loan or on a later date if the bank decides,

2) Repayments be made every three months after the three-year grace period, and

3) the interest rate be 3% per year on the amount that is given out and remaining to be repaid.

According to the Prime Minister, the government’s desire to support this financial agreement between the NIC and SLDB is due to the housing opportunities this could create for Saint Lucians.

He shared, “The XCD 20, 000, 000 will be used for affordable housing initiatives, to finance land purchases, and the development of affordable housing projects including for low to [middle] income families…”

Pierre stated that the bank especially intends to accommodate public officers, including “policemen, teachers, nurses, doctors, with special emphasis on first time home owners.”

He added, “…as part of the program, public servants will be eligible for 100% loan financing from the SLDB. And a grant of $1000 to pay their legal fees. Further, the government will exempt stamp duty for any mortgage less than $400,000.”

The Prime Minister also confirmed that stamp duty would be exempted for the first $400,000 on all mortgages.

Additionally, Pierre shared that the loan will be used to improve small and medium enterprises in Saint Lucia, “to assist entrepreneurs in expanding their operations.”

At the sitting, the motion received no objection. The Prime Minister asserted, “the funds are expected to be utilised across various sectors, enhancing the economic landscape and providing tangible benefits to the people of Saint Lucia.”

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3 COMMENTS

  1. verry good news for those who can have housing or a bussiness to prosper if used correctly.also roads are in dire need in area that need fixed for bella rosa neighbors witch take must distruction for the cricket matches an cars parked on main roads are dangerous for all.please make the money be used wisely, AMEN FOR OVERSIGHT TO THIS BEING DONE RIGHT.

  2. You see this right here PUTTING ST LUCIANS FIRST….…..this is why PJP is my PM and the PEOPLES CHOICE. We need affordable housing some of us need to stop paying rent and try to own your own homes….. having a home is a good way make your self more financially profound and build generational wealth if you are not careless. I tell young people all the time when you get your first good job don’t run and buy fancy call and have it park by the road and paying rent…..sometimes the car note is higher than the rent. Coming up these opportunities were not available to many of us we paid high interest rates from the bank just to build the bottom of our homes so take heed and support your government.

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