St. Vincent Government To “Borrow Back” Loan Payments Made To Venezuelan Bank

• Prime Minister Dr. Ralph Gonsalves says St. Vincent and the Grenadines has obtained permission from Venezuela to “borrow back” US$9.00Mn paid on loans owed to theALBA Bank. 
• The money had been held in an escrow account at the Eastern Caribbean Central Bank(ECCB), as sanctions imposed on Venezuela by the United States prevented its transfer to Caracas. The Prime minister noted that the money was paid there to reduce the issue of any challenges arising with the sanctions. 
• Two proposals were put forward to the Alba Bank which have been accepted, one of which was to utilise US$4.00Mn to procure vessels for St Vincent’s fishing industry. This arrangement would be made with particular fishers to train them. These are bigger vessels at a higher level requiring other kinds of training and building a fleet. The other US$5.00Mn is being earmarked for the repair of Little Tokyo, the bus terminal in Kingstown that services the east of the country. 
• Notably, Venezuela cancelled Kingstown’s debt under the PetroCaribe oil initiative and agreed to cancel 50% of the debt owed by the other members of the Organisation of Eastern Caribbean States. This would in turn provide an improvement in the sovereign’s balance sheet.

(Sources: Caribbean News Weekly & NCBCM)