The Anguilla House of Assembly has approved a Government motion to borrow two long-term loans from the Barbados-based Caribbean Development Bank to finance the planned Blowing Point Port Development Project and the Anguilla Community College Hospitality Institute. Though approved by the House, it is also required that the borrowing of the money must have the prior approval of the Secretary of State in London.

The motion was moved in the House of Assembly on March 19 by Minister of Finance, Victor Banks. He said the total loan amounted to EC$49,637,763 (US$18,270,000). Of that sum the Hospitality Institute loan is $270,000 of which $120,000 is grant (which does not have to be repaid). The rate of interest on that loan is 4% per annum with a grace period of two years. The period for pay back is 7 years.

For the Blowing Point Port Development, the amount is $18 million dollars (without grant). The rate of interest is 5.42% per annum. The grace period on repayment of the principal is 5 years and the total period for pay back is 17 years.

Mr. Banks told the House that Anguilla’s debt burden had been low, by all standards, and that at the end of 2008 it was at 20% of GDP.

Mr. Banks’ motion received the full support of both sides of the House. Opposition Member for Road North, Edison Baird, in supporting the measure, said his only disagreement was in relation to the Little Habour site for the Hospitality Institute.

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