The Dominica Agricultural Industrial and Development (AID) Bank performed less than expected as at year ended June 2018. The bank’s loan portfolio dropped from EC$168.8 million recorded on June 30, 2017, to EC$166.2 million on June 30, 2018. This decrease represented a 1.53% reduction in its loan portfolio performance, said bank’s chairman Martin Charles.
By the end of June 2018, less than 1 year after Hurricane Maria it was no surprise that the bank’s financial performance was less favorable than the previous year; the bank saw the deterioration in its loan portfolio quality, portfolio growth, and rental income.
Martin Charles: AID Bank’s Chairman
According to Charles, the AID bank was only able to post a net profit of EC$0.73 million as at year ended June 30, 2018.
He revealed that following Hurricane Maria, the government fought hard to set up “national resilience development strategy which is a broad framework that provides the guidelines for achieving its national objectives by 2030.” The unfortunate incident of the hurricane galvanized the government into strengthening the country’s operating mechanisms for stronger economic resilience.
To this end, the bank injected lots of funds into boosting productive sectors of the economy in its resolve to rebuild all aspects of national life. Fishermen and farmers numbering 213 as well as people active in the tourism sector were assisted with EC$4.1 million by the government’s Citizenship by Investment (CBI) fund.
Charles reported that 54% of the funding was allocated to farm development and 24% assigned for poultry enterprises while 15% went towards fishing activities. He clarified that 32% of the entire CBI fund was invested Southeast region of Castle Bruce to Delices and 22% of the investment allocated to develop the northeast region of Calibishie to Margiot.
In a bid to benefit the people for whom the CBI loan was meant, the interest rate was reduced to 2% for this class of people. For instance, a total EC$5.1 million of the CBI loan facility was assigned to rebuilding the tourism sector following the devastation of Hurricane Maria.
“The tourism facility was modified to include a broader utilization of the funds to include property restoration, renewable energy, energy-efficient components, and a working capital component,” the AID bank chairman said.
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