Government to Subsidize One Percent of DFC Loan Interest Rate

Dean Barrow

According to Prime Minister Dean Barrow, so as to be able to lend the monies at a six percent interest rate, government has to subsidize one percent or one hundred thousand dollars of the ten million dollars being made available.

Prime Minister Dean Barrow

“In order to arrive at the six percent interest rate to the borrowers which is, as I recollect, what I had promised.  I didn’t see that we would be able to get below six percent, but six percent certainly beats eight or nine percent to hell.  In order then, to be able to assist the DFC to lend this money to the tourism stakeholders at six percent government will subsidize one percent of the loans.  The DFC, in consequence of the resourcefulness and ingenuity of the general manager and the entire staff, the whole institution, was able to get it down to seven percent.  That’s one percent above what I had committed to and so government will take up the subsidy of that one percent difference so that in fact when it reaches, when the funds reach the tourism stakeholders, those funds will reach at a repayment rate of six percent.”