The Grenada parliament has given the green light to the cash-strapped Keith Mitchell regime to borrow $US16.5 million from the Patrick Manning administration in Trinidad and Tobago.

A motion seeking approval to borrow the money was passed Tuesday during a sitting of the House of Representatives held at the Grenada Trade Center in Grand Anse, St. George's.

The Minister of Finance now has the authority to borrow from the Trinidad government $US16.5 million to be used for Housing and Business Reactivation. In speaking on the motion, Finance Minister Anthony Boatswain told the sitting that the loan has a 5 year moratorium on interest and principal repayment and a 25-year repayment period.

According to Minister Boatswain, the condition also entails half-yearly payments on interest and principal and that for the first three months interest will be 3.5% and thereafter 2% per annum.

He pointed out that the Barbados-based Caribbean Development Bank (CDB) will be the administrator of the loan. He disclosed that the Grenada Development Bank (GDB) will be responsible for the business reactivation component of the loan and the Housing Authority of Grenada (HAG) for the Housing component.

The opposition members of Parliament associated with the National Democratic Congress (NDC) objected to the Motion on the grounds that there is not sufficient details about the utilisation of the funds. In his contribution on the debate, Shadow Finance Minister and Member of Parliament for St. George's North-east, Nazim Burke questioned government's plans on the utilisation of the funds.

Burke questioned what plans are in place for business reactivation in the country and how much money will go towards the idea as well as the amount for house repair.

Burke, a Barrister at-Law by profession, stated that the House has not been told by the Mitchell government about the type of businesses they plan on revitalising. The opposition M.P concluded that government wants a blank cheque to be issued to them so that they can spend the funds they way they please.

Education and Labour Minister Claris Charles who spoke on the Motion pointed out that this country could not have gotten a better deal on the loan. She told the sitting that the people of the country should thank Trinidad and Tobago for what she described as their grateful donation.

The Motion was approved when members of the government side voted in favour of the bill while opposition members abstained.