The European Union (EU) said Friday it had made available a record high €130.2 million (US$162.7 million) in grant funding to nine Caribbean Community (CARICOM) countries last year.
A statement from the Barbados-based European Union Delegation to Barbados and the Eastern Caribbean said that among the nine countries, funds were also made available to the British Overseas Territories of Anguilla and Montserrat to the tune of €12.7 million (US$17.2 million).
“This amount clearly demonstrates the continued commitment by the European Union to supporting the Caribbean states, especially in these difficult times of a sustained financial and economic crisis and natural disasters like Hurricane Tomas,” said Ambassador Valeriano Diaz, head of the European Union Delegation to Barbados and the Eastern Caribbean.
The EU said that the funds contributed to the social development of the small island states and their economic stability.
It said the budgetary support “was a delivery instrument that provided up to €59 million (US$72 million), or 45 per cent of the overall development assistance.
“This was especially crucial at times when the countries in the region battled with lack of fiscal space and a rising debt problem. In order to benefit from budgetary support, recipient countries have to demonstrate macroeconomic stability, improvements in public-finance management, and progress in the implementation of the supported strategies.
intensifying dialogue
The statement said: “The European Union is, therefore, keen in intensifying its dialogue with the countries concerned on these important matters.”
It said that the overall disbursement total also includes banana payments totalling €19 million (US$23.7 million), which was distributed in St Lucia, Dominica, and St Vincent and the Grenadines to assist them in diversification of the agricultural sector and to create safety nets for banana farmers.
In the case of Antigua and Barbuda, the European Union disbursed €9 million (US$11.2 million) under its special vulnerability assistance scheme which was set up to help eligible African, Caribbean and Pacific countries deal with the effects of the global financial crisis.
“This contribution allowed the Government of Antigua to fill a financing gap and maintain critical social expenditure as it supported government’s macro-economic and fiscal-reform programmes in conjunction with the International Monetary Fund (IMF),” the EU said.
In the case of Barbados, the European Union disbursed €12.1 million (US$15.12 million) in grants in 2010.
The main highlight of the support was €4.94 million (US$6.17million) in support of the country’s information and communication technology strategy, along with another major payment of €4.7 million (US$5.86 million) budget support disbursement towards the international business and financial services sector.
Other aspects of the overall intervention include the signing of the first phase of a sector budget-support programme towards the implementation of a human resource development programme, assessment of the country’s public finance management systems, and institutional strengthening.
budgetary support
Disbursements in Dominica totalled €16.3 million (US$20.38 million) which included vulnerability assistance of €8.15 million (US$10.1 million) in the form of budgetary support which went towards funding some of government’s priority programmes in education, health, water management, and housing. Some of this assistance was also channelled towards a private sector growth and development programme.
Banana-related payments in Dominica amounted to € 842,000 (US$1.05 million).
In the case of Grenada, that island benefited from payments totalling €11 million (US$13.7 million), which included two vulnerability-assistance payments of €7.3 million (US$9.12 million).
“This major contribution allowed the Government of Grenada to fund social projects such as the book-rental programme, the school-feeding programme, transportation assistance to school children, road improvement and maintenance programmes, the public-assistance programme, and the debushing or roadside- clearing programme.”
The EU said that it also provided banana-related payments totalling €352,000 (US$400,000).
The EU provided €5.7 million (US$7.12 million) to St Kitts and Nevis last year. The funds went towards a safety and security programme, the aim of which is to construct a new prison for those on remand, psychiatric prisoners, and repeat offenders; to renovate a number of police stations and coastguard facilities; and to upgrade the fleet of the Ministry of National Security.
– CMC
