EU lends millions to COVID fight

Barbados’ response to the COVID-19 pandemic has received a $120 million loan to boost the effort from the European Investment Bank (EIB), the European Union’s lending arm said Tuesday.

The government indicated that the loan will pay for the costs already incurred in the fight against the year-old pandemic.

The loan is to support the costs of strengthening the public health system to improve the full range of COVID-19 treatment and prevention – more treatment capacity for COVID-19 patients, lab capacity and equipment, quarantine facilities, IT equipment, vaccine storage, track and tracing, and logistics, transport and monitoring activities. The financing is also intended to relieve the financial burden of increased healthcare spending “during a time of economic hardship,” according to the EIB.

Minister of Economic Affairs and Investment Marsha Caddle said the low-cost financing allows Government to retroactively finance the building of Harrison’s Point and other COVID spending in addition to new spending related to the pandemic.

She said: “It also allows us to ensure that we can still provide important health care services, such as improved care through an expanded Accident and Emergency Department, and continued attention to cancer care and chronic, non-communicable diseases. EIB has shown tremendous leadership and innovation in providing low-interest, concessional terms for crisis financing, so that countries like Barbados do not have to explode our debt beyond sustainable levels in order to help our people survive.”

The interest rate and other payment terms for the apparent concessionary financing were not immediately provided.

EIB Vice President Ricardo Mourinho Félix said the partnership with Government will help protect vulnerable groups against the impact of the pandemic.

Part of the EIB’s plan is to increase its financing to strengthen health and economic resilience to the pandemic around the world, he said.

“This financing is part of the EIB’s global response to the pandemic, including over 5 billion euros ($12 billion) for urgent health investments, accelerating long-standing support for private sector investment in more than 100 countries around the world, said Félix.

EU Ambassador Malgorzata Wasilewska said: “The financing of the EIB complements the grants that the EU has provided the region in response to the pandemic. Barbados will soon receive 3.5 million euros ($8.4 million) in social protection funding due to the challenging economic situation the country faces, and we have provided 8 million euros ($19.6 million) to the Caribbean Public Health Agency (CARPHA).”

The funding will also provide all Caribbean states access to vaccines through the COVAX facility, managed by Gavi, the global vaccine alliance, Ambassador Wasilewska said. (SD/PR)