The Inter-American Development Bank (IADB) granted Grenada a US$8.95 million loan to help people in vulnerable situations due to the COVID-19 pandemic.
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The economic bailout will be delivered through the Caribbean Development Bank (CDB) and will be focused on Individuals and small businesses.
Disbursements are expected to start in August or September with an interest rate of about 2.06 percent. Granada will have a 5-year grace period and a repayment timeline of over 20 years.
"We must understand that there are many people who have been without an income for over a year, and they too have commitments and families that they need to take care of," Prime Minister Keith Mitchell said.
He explained that the Finance and Social Development ministries would work in conjunction to enlist people who can be supported through this credit.
It is not the first loan that the government approved for supporting people in distress amid the pandemic. In April 2020, the Parliament passed a US$18 million package to help workers in the tourism sector.
The new loan comes as part of the IDB's initiative to boot capacity building and resilience in Eastern Caribbean nations. In 2020, the CDB and the IADB signed a US$50 million loan to support COVID-19 response projects in these countries.