By McPherse Thompson, Assistant News EditorTHE CARIBBEAN Development Bank (CDB) said that although it has not yet gone to the international market to raise the US$100 million required to fund the Caribbean Court of Justice, it will provide the funding whenever individual governments are ready.
"At the time when these funds are required we'll be in a position to make good on our undertaking," said Adrian Debique, deputy director of the Corporate Planning Division at the Barbados-based bank.
In an interview with Wednesday Business, Mr. Debique said the CDB, which will be on-lending the US$100 million to member countries, has not considered and would not be seeking alternative sources of financing the regional court.
"We find it more efficient to go to the market for funding because of our triple A rating," he said. "As a AAA institution we find it easier and cheaper to raise money on the international market than would other institutions in the region," he added.
JUST UNDER 30 PER CENT
OF BILL FOR JAMAICA
The Caribbean Court of Justice is expected to be inaugurated before the end of this year, but is not expected to become fully operational until some time next year.
However, following a meeting with finance officials from member states earlier this year, the CDB determined that Jamaica would contribute just under 30 per cent or the second largest portion of the funds required to establish and operate the controversial regional court.
Although Jamaica's Ministry of Finance and Planning officials could give no indication about the status of the fund-raising exercise for the Caribbean Court, they had agreed at the CDB meeting that the island would initially contribute US$28.7 million, only less than the US$31.6 million to be made by Trinidad and Tobago, which will house the headquarters of the court.
The CDB said Barbados would be contributing US$13.5 million to the start up of the regional body, Guyana would contribute US$8.8 million, Belize US$3.7 million, while the smaller island nations of Antigua & Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and The Grenadines would each contribute US$2.2 million.
The CDB said it would be providing US$100 million for the CCJ, but would borrow US$96 million of the amount for on-lending to the borrowing member countries. An additional US$4.4 million would be provided from CDB's special development fund.
SPECIAL LOAN
ARRANGEMENT
Each borrowing member country will be given 10 years in which to repay the special loans, at an interest rate currently at 5.5 per cent, but variable. In the case of Guyana, half of what it will be borrowing will come from CDB's special funds for which it will be given 20 years to repay, at interest rate of two per cent.
The funds being borrowed will be transferred into an independent trust fund. Income from the investments of the fund would be used to finance the capital and recurrent budget of the Court in perpetuity, the bank said.
The CCJ is said to be crucial to the success of the Caribbean Single Market and Economy (CSME), which is expected to become a reality by 2005.
The CCJ is expected to be a hybrid institution - a municipal court of last resort and an international court with compulsory and exclusive jurisdiction with respect to the interpretation and application of the treaty under which the Caribbean Community (CARICOM) functions.
