The Inter-American Development Bank (IDB) will provide $100 million to help finance humanitarian and reconstruction efforts in the Bahamas, following widespread loss of life and destruction caused by Hurricane Dorian.
According to an IDB media release, the funds are from a $100 million contingency loan signed in April 2019, to cover unexpected public expenses arising from emergencies caused by severe or catastrophic natural disasters.
The media release stated that the loan disbursement is subject to eligibility requirements including sustained wind speeds, accumulated precipitations and impacted populations. All the requirements were met by the devastation Hurricane Dorian caused in the Abaco and Grand Bahama regions, in the northern Bahamas.
The IDB added that the contingency funding comes on top of an emergency donation of $200,000 provided by the IDB.
“The images of utter destruction and loss of precious lives are heart-wrenching,” said IDB Group country representative in the Bahamas, Daniela Carrera. “We are pleased to provide some urgent financial support to help with the massive task ahead. We all stand with the Abaconians and Grand Bahamians.”
The media release said that the Bank’s assistance will support government’s efforts to provide the required relief to the affected populations.
“Hurricane Dorian has caused unprecedented loss of life to the country, damage to public infrastructure and private property on several islands. It has left tens of thousands of residents in urgent need of food, water, shelter, medicine and other necessities. The storm inflicted the most severe damage in the Northwestern islands—particularly on the Abaco Islands, Grand Bahama and the Berry Islands.”
The contingency loan has a repayment term of 25 years, a 5.5-year grace period and an interest rate based on LIBOR, the media release concluded.