THE HAGUE–All is not lost for the low-interest Qredits financing in the Windward Islands. The programme is part of the World Bank’s analysis of St. Maarten’s financial market.
The Dutch Ministry of Home Affairs and Kingdom Relations BZK confirmed on Thursday that the World Bank is busy with an integral analysis of the financial market in St. Maarten and instruments to boost the economy’s recovery.
According to the Ministry, it is very important to deploy the correct instruments in this, as taking the wrong actions can increase the risk of disruption of the local financial market. Qredits is included in this integral analysis. This does not automatically mean that the low-interest loan programme will continue, but it is part of the assessment.
Qredits was one of the seven organisations that received direct funding from the Netherlands in December 2017 for the so-called early recovery projects. With the financing of 550,000 euros, Qredits was able to provide 90 credits with an extra-low interest rate of 2 per cent and a no-repayment period of one year. In total, US $2 million was disbursed in soft loans.
The micro-credit is highly popular: there were many more applications than the 90 that were dispensed. Qredits also supplied low-interest loans in St. Eustatius and Saba, but the majority were granted in St. Maarten where the damage caused by Hurricane Irma was much more extensive.
State Secretary of Home Affairs and Kingdom Relations Raymond Knops said on Thursday that he was very content with the fact that Qredits was able to disburse all credits in such a short period. In this manner, Qredits was able to provide a boost to especially the small entrepreneurs in St. Maarten.
Authorities in the Windward Islands expressed great concern after the local media published the news that Qredits’ soft-loan programme would discontinue immediately because of lack of outside funding. Standard loan conditions with the regular 9.75 per cent interest rate are in effect as of Tuesday.
Source: The Daily Herald https://www.thedailyherald.sx/islands/78107-qredits-part-of-integral-analysis
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