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ECCB approves $15 million loan to aid BLA


The Eastern Caribbean Central Bank (ECCB) has approved a loan of $15 million towards aiding the troubled Building and Loan Association.{{more}}

Prime Minister Dr Ralph Gonsalves made the announcement on Monday at a press briefing, saying that he had received notification from the Deputy Governor of the ECCB, Trevor Brathwaite, on March 22.

He explained that there have been no meetings of the monetary council since the takeover of the BLA by the Financial Services Authority (FSA), but Gonsalves said that he had submitted an application for the amount in liquidity support.

The amount was approved and comes from the fiscal reserve tranche two, Gonsalves explained and granted for a period of three years on four conditions.

The conditions include the payment of an interest rate of two per cent, to be paid quarterly, and the principal to be repaid in quarterly instalments over the three-year period.

He said that he was not involved in the FSA’s management of the BLA, but according to Gonsalves, he indicated before the takeover that he needed to “line up some ducks”, one of which was to provide some liquidity support.

This was a matter of great importance to the country’s financial system, the Prime Minister said, adding that this was money that he could have been using elsewhere to ensure stability of the financial system. (DD)