World Bank funds Saint Lucia for COVID-19 response

World Bank funds Saint Lucia for COVID-19 response

Debt Capital Markets Corporate & Sovereign Strategy Loans Caribbean Coronavirus

The World Bank has granted $30 million in funding to Saint Lucia for COVID-19 response, it said in a press release on Friday.

The 40-year loan is interest-free and comes with a 10-year grace period, the World Bank added. 

The quick-disbursing credit aims to help mitigate the negative economic impacts of COVID-19 on the most vulnerable population, strengthen economic recovery, and "enhance resilience to shocks" in the medium term, it said.

"The COVID-19 pandemic has had severe social and economic impacts on the Caribbean small states, especially those that are highly dependent on tourism like Saint Lucia," said Tahseen Sayed, World Bank country director for the Caribbean. 

The World Bank estimates that Saint Lucia's GDP will contract by 18% in 2020 due to the halt in tourism.