Aid roundup: Peru to help Agrobanco; WB assists Dominica

Agrobanco to receive lifeline

Peruvian prime minister César Villanueva, economy minister David Tuesta and agriculture minister Gustavo Mostajo have announced that the government will inject an additional 80mn soles (US$25mn) into Banco Agropecuario (Agrobanco), extending the state development bank a lifeline as it attempts to regain financial stability.

The support will be released in three monthly issuances: an initial 20mn-sol payment in April, followed by two payments of 30mn soles each, reported local daily La República.

The injection is aimed to help Agrobanco avoid seeing its default rate exceed 40%, thus easing concerns from those financial institutions supporting the institution.

World Bank aid to Dominica

The World Bank has ramped up efforts to help hurricane-ravaged Dominica in recovery efforts, extending an additional US$65mn loan on concessional terms and US$50mm in grant financing from the International Development Association's (IDA) Crisis Response Window.

The aid package represents the highest ever such financing for the country, after a direct hit from Category 5 Hurricane Maria last September killed 30 and caused an estimated US$1.37bn in economic damage, equivalent to about 226% of GDP.

"This financing enables us to make two critical investments in our economic recovery following the devastation of hurricane Maria last year," said Dominica prime minister Roosevelt Skerrit in the announcement. "These investments in agriculture and housing also represent vital components of our plan to make Dominica the first climate resilient nation in the world."

"Last year was a stark reminder that the Caribbean is a region most exposed to natural disasters," said Tahseen Sayed, the World Bank's country director for the Caribbean. "Through these projects we have an opportunity to contribute to Dominica's efforts to build back better and smarter, with structures able to resist high winds, and help some of the most vulnerable including farmers and fisherfolks to cope with the shock and be better prepared for the next storm."