World Bank Approves US$50 Million to support volcanic recovery in SVG
By South Florida Caribbean News June 26, 2021
The World Bank Board of Executive Directors approved US$50 million in Supplemental Financing for the Second Fiscal Reform and Resilience Development Policy Credit (DPC) for St Vincent and the Grenadines. This quick-disbursing operation aims to help the country cover a large unexpected financing gap and address emergency needs caused by t La Soufriere volcano eruption, which began in [April] 2021. The original DPC was approved in June 2020, a release from the bank states.
The volcanic eruption began as St Vincent and the Grenadines was still coping with the devastating socio-economic effects of the COVID-19 pandemic, said Tahseen Sayed, World Bank Country Director for the Caribbean.
The eruptions displaced close to a quarter of the island’s population and severely impacted livelihoods. We value our strong partnership with Saint Vincent and the Grenadines, and the World Bank remains committed to supporting the people in their efforts to manage the impacts of both COVID-19 and this crisis.
The volcano eruption, and the ensuing ashfall, mudslides, and pyroclastic flows have had devastating impacts on people’s livelihoods and the economy of St Vincent and the Grenadines. This supplemental financing to the DPC approved last year will help the government address emergency response and recovery needs, while also supporting long-term development goals. The operation supports the country’s program to respond to the COVID-19 pandemic, strengthen fiscal sustainability, and enhance climate and disaster resilience. The financing, which is from the International tDevelopment Association (IDA), is interest-free with a maturity of 40 years, including a grace period of 10 years.