The Caribbean Development Bank, CDB has approved an Exogenous Shock Response Policy-Based Loan of US$50 million to support The Bahamas after Hurricane Dorian.
In a statement yesterday the CDB notes the loss of life and destruction caused by Hurricane Dorian placing a heavy burden on The Bahamas.
It says the loan will support the people and the country during the recovery and maintain the momentum of the ongoing reform programme fostering fiscal discipline.
CDB President Dr.Warren Smith says the loan’s expected to help the Bahamas build resilience against natural disasters.
As at October 2019, there were 67 confirmed deaths and 282 people are still missing.
Nearly 30-thousand inhabitants, or just over 40% of the combined population of the islands of Abaco and Grand Bahama – hit by the hurricane in September, suffered severe damage.
The United Nations, estimates the total value of the damage and loss is equivalent to 25% of that country’s gross domestic product,GDP, which exceeds the damage and loss incurred from Hurricane Mathew in 2016.
The bank says the Exogenous Shock Response Policy-Based Loan is an instrument to provide resources for financing needs arising from external and natural hazards shocks that have a significant economic and social impact.
It also states the loan will support the implementation of the comprehensive reform programme of The Bahamas to achieve fiscal sustainability and enhance economic growth and job creation.
Economic growth in the Bahamas has been revised downwards from 1.7% to 1 per cent in 2019 and from 1.8% to 1.5% in 2020.
That’s a total impact on GDP of one percentage point.
The CDB says economic growth’s expected to return to its long- term average of approximately 1.8% by 2021.