POND ISLAND–Economic Affairs Minister Stuart Johnson said he will be “working diligently” with the Council of Ministers and other stakeholders on possibilities for the resumption of the Qredits soft-loan facility that ended on Tuesday due to funding issues.
“I will do what is necessary to facilitate the continuance of this programme which is vital for the recovery and rebuilding of our national economy,” Johnson said in a press statement.
As a soft-loan facility for entrepreneurs, “Qredits has been very beneficial to micro, small and medium-sized enterprises on the island,” he said.
Qredits received funding from the Dutch Ministry of Interior and Kingdom Relations to provide soft-loans from January 2018 to June 2018, under special conditions following Hurricane Irma. This micro-financing programme included a maximum loan of US $25,000 with an interest rate of two per cent per annum for a five-year period and only payment of interest in the first year of the loan.
Qredits normally offers financing at an interest rate of 9.75 per cent per annum with a non-payment period of three months. The normal rates are back into effect.
The Dutch Government has opted to channel additional funds for this programme via the World Bank-administrated Dutch Recovery Trust Fund. The lengthy World Bank process will cause a delay in the soft-loan facility continuation.
The break in funding is “unfortunate, but a reality that we will have to work with in order to get the programme back on track for the St. Maarten micro, small and medium-sized business sector,” said Johnson.
Source: The Daily Herald https://www.thedailyherald.sx/islands/78073-stuart-to-seek-qredits-soft-loan-continuation
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