Business View Caribbean | January 2020

9 BUSINESS VIEW CARIBBEAN JANUARY 2020 OPENING L INES T he Bahamas is in line for US$50 million to help it recover from the devastating Hurricane Dorian which left Grand Bahama and Abaco in shambles when it hit at the beginning of September. The Board of Directors of the Barbados-based Caribbean Development Bank (CDB) said recently that it has approved an Exogenous Shock Response Policy-Based Loan of US$50 million. “The loss of life and massive destruction caused by Hurricane Dorian has placed a heavy burden on The Bahamas. The loan will support the people and the country during the recovery and maintain the momentum of the ongoing reform program to foster fiscal discipline and build resilience against natural disasters,” said CDB President Dr. Warren Smith. As of October 2019, there were 67 confirmed CDB TO PROVIDE US$50 MILLION LOAN TO THE BAHAMAS FOR RECOVERY AND REFORM AFTER HURRICANE DORIAN deaths and 282 people still missing. Some 29,500 inhabitants, equivalent to over 40 per cent of the combined population of Abaco and Grand Bahama, suffered severe damage to homes and assets. According to the United Nations, the total value of the damage and loss is equivalent to 25 per cent of gross domestic product (GDP), which exceeds by far the damage and loss – equivalent to 4.9 per cent – incurred from Hurricane Matthew in 2016. The Exogenous Shock Response Policy-Based Loan is an instrument to provide resources for financing needs that arise from external and natural hazards shocks that have a significant economic and social impact. In addition to providing finance for the ongoing recovery, the loan will support the implementation of the comprehensive reform program of The Bahamas that aims to achieve fiscal sustainability and enhance economic and physical resilience to