The Inter-American Development Bank’s (IDB) Board of Executive Directors has approved a US$100 million loan to help Trinidad and Tobago finance its public health response against the COVID-19 crisis and implement fiscal and financial measures to offset the negative impact of the pandemic on its economy and the lives of its citizens.

The operation is part of a two-tranche programmatic Policy Based Loan program approved by the Bank to help Trinidad and Tobago fight the health and fiscal crisis and prepare the country’s recovery after the pandemic.

This first operation mainly focuses on supporting policy measures undertaken during the pandemic to promote the availability and efficient execution of resources during the emergency. It will support household income and business liquidity through the provision of tax refunds, salary relief grants, food stamps, and rental assistance while improving the government’s ability to properly target the beneficiaries for such programs. Purchases of medical equipment and hiring of medical staff will also be facilitated.

Through the provision of technical tools to the Fair Trading Commission for the implementation of the Fair Trading Act (FTA), the operation will also support the goals of the Act: promoting enhanced rivalry in markets, lowering the cost of essential goods for consumers and increasing private sector productivity.

The IDB loan has a repayment term of 20 years, a grace period of five and a half years and an interest rate based on LIBOR.