The World Bank has signed US$50 million in Supplemental Financing for the Second Fiscal Reform and Resilience Development Policy Credit (DPC) for St Vincent and the Grenadines.
The World Bank has signed US$50 million in Supplemental Financing for the Second Fiscal Reform and Resilience Development Policy Credit (DPC) for St Vincent and the Grenadines.
This quick-disbursing operation aims to assist the country cover a wide unexpected financing gap and address emergency requirements caused by the La Soufrière volcano eruption.
Notably, the original DPC was approved in June 2020.
“The volcanic eruption started as St Vincent, and the Grenadines was still coping with the devastating socioeconomic impacts of the coronavirus pandemic,” said Tahseen Sayed, World Bank Country Director for the Caribbean.
“The eruptions displaced approximately to a quarter of the island’s population and harshly impacted livelihoods. We value our strong ties with St Vincent and the Grenadines, & the World Bank remains dedicated to supporting the people in their attempts to manage the impacts of both COVID-19 also this crisis.”
The volcano eruption & the ensuing ashfall, mudslides, and pyroclastic flows have had disastrous impacts on people’s livelihoods also the economy of St Vincent and the Grenadines.
This supplemental funding to the DPC approved last year will assist the government address emergency response & recovery needs, while also encouraging long-term development goals.
The operation helps the country’s program to respond to the COVID-19 pandemic, strengthen fiscal sustainability, and improve climate and disaster resilience.
The grant, which is from the International Development Association (IDA), is interest-free with a maturity of 40 years, including a grace period of ten years.
About World Bank:
The World Bank is an international financial organisation that gives loans and grants to the governments of low- and middle-income nations for the purpose of pursuing capital projects.
The World Bank was founded at the 1944 Bretton Woods Conference & the International Monetary Fund (IMF). The president of the World Bank is traditionally an American. The World Bank & the IMF are both based in Washington, D.C., and work closely with each other.
