Published On: Fri, Jan 22nd, 2016

St Kitts-Nevis secures more funds from Venezuela

fresh_startBASSETERRE, St Kitts - Prime Minister Dr Timothy Harris, has announced that St Kitts and Nevis has secured a further US$1 million from the government of Venezuela through its Petróleos de Venezuela SA (PDVSA) St Kitts-Nevis Limited to fund the Fresh Start programme.

During his first press conference for 2016, held January 19, Harris said that increased opportunities to earn more and generate wealth fell under his government’s prosperity agenda.

“You would be aware that we had the Fresh Start programme through the assistance from the government of Venezuela and the Development Bank, that provided an initial tranche of US$5 million, just around EC$13 million plus, and that went like a frenzy,” he said. “We were lucky to have the Venezuelan government again advance another US$1 million to take the total up to US$6 million so that EC$16 million was available. Just over 200 applicants have been approved and have been paid. The EC$16 million therefore is no more. That again has gone to satisfy the heavy demand in the country by the small and medium-sized entities.”

The prime minister further revealed that additional funding for the programme was being sought locally.

“And so the government is considering a subvention to the bank to support additional resources to meet a portion of the unsatisfied demands for low cost financing by small businesses under the Fresh Start programme,” Harris said, noting that this type of funding is not customarily provided by commercial banks.

The Fresh Start loan, which is specifically for small and medium enterprises (SMEs), is distributed by the Development Bank of St Kitts and Nevis (DBSKN.)

General manager of the DBSKN, Lenworth Harris, said at the signing ceremony on September 4, 2015, that the maximum loan per person would not be more than US$100,000 at an interest rate that should not exceed five percent and repayment would be based on the nature of the business that is being funded. While repayment could start almost immediately, it is based on a reducing balance basis whether with monthly or weekly installments as appropriate.

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