The ruling New National Party (NNP) government is to borrow US$15 million from the Kuwait Fund for Arab Economic Development and the Organisation of Petroleum Exporting Countries (OPEC) for the rehabilitation of agricultural feeder roads throughout the country.

Approval for the loan was given last Tuesday at a special meeting of the House of Representatives held at the Grenada Trade Center at Grand Anse, St. George’s.

The financially-strapped government of Prime Minister Dr. Keith Mitchell also received parliamentary approval to obtain an overdraft facility to meet the country’s current requirements.

Unlike previous sittings, the parliamentary opposition National Democratic Congress (NDC) did not oppose the money bills.

One of the bills gives authority to Finance Minister Anthony Boatswain to contract a loan of US$10 Million with a grace period of four years and interest rate of 2.5% per annum.

The Mitchell government plans to use the loan to rehabilitate approximately 50 kilometers of agricultural feeder roads.

The US$5 Million loan from OPEC will also be used to rehabilitate agricultural feeder roads.

The agreement calls for the loan to be repaid in 30 semi-annual installments starting December 15, 2010 of US$166,660.00 each with the last payment being US$166,860. 00. The interest is fixed at 5.37% per annum.

In speaking on the motion, the Leader of Government Business, Agriculture Minister Gregory Bowen said that infrastructure is critical and plays an important role in the development of the agriculture sector.

The other two motions brought before the House by government were to give Minister Boatswain authorization to borrow, by means of advances from four local banks, EC$40 million to meet current requirements.

The monies will come from the National Commercial Bank of Grenada, the Bank of Nova Scotia, Grenada Co-operative Bank Ltd and First Caribbean International Bank.

The money has to be repaid over a 12 year period, with a moratorium of three years on the principal and at 5.75% interest rate per annum.

According to Minister Boatswain, as a result of this loan agreement with the commercial banks, government will save money on interest and the servicing of its overdraft and debt.

This, he said is a prudent approach to debt management and debt restructuring by the NNP regime.

The Opposition Shadow Finance Minister Nazim Burke noted that the Congress party was supporting the motions despite not getting any detailed information from government on the loans.

Burke said that given the country’s efforts to re-build and restructure its debt, the opposition will support the bill.

Opposition Leader Tillman Thomas who also spoke on the issue warned the Mitchell government that borrowing must come with a plan since more pressure could be brought to bear on Grenadians.

Minister Boatswain was very thankful to all members of the House for supporting the Motions.