Vanuatu’s farmers and local entrepreneurs can begin accessing a Government grant scheme that is aimed at supporting the economy during the COVID-19 pandemic. next month.
Prime Minister (PM) Bob Loughman Weibur announced the grant worth VT 2.8 billion during a meeting with the Vanuatu Chamber of Commerce and Industry (VCCI).
The Government’s Public Relations Officer, Fred Vurobaravu said the Council of Ministers (COM) approved the grant money in a meeting on 15 October.
The grant will be available from December 2020 to December 2021.
Prime Minister Loughman also confirmed that the National Bank of Vanuatu (NBV) will manage the grant scheme through a bank lending product at a 1 % repayment interest rate, with a grace period of 6 months.
The maximum loan is VT 100 million per application.
Mr Loughman said the fund will improve the productive sector and this is to ensure that Vanuatu resorts to a more sustainable way of growing the economy.
The Prime Minister met with the VCCI executives to discuss ways of strengthening the economy, create jobs and open the export markets.
Tourism contributes about US$ 175.8 million to the economy of Vanuatu.
Since the COVID-19 pandemic was announced in March, severe travel restrictions have affected the economy.
According to the Food and Agriculture Organisation, Vanuatu’s economy is expected to decline (-13.5 percent ).
Job losses are expected to hit around 21,000 for Vanuatu
Photo Caption: Vanuatu Prime Minister Bob Loughman (3rd right) at a meeting with the Vanuatu Chamber of Commerce executives in Port Vila.