Prime Minister Dr. Godwin Friday announced that the Taiwanese government has committed at least $2 million USD in grant funding to help capitalize the long-awaited National Development Bank (NDB). Speaking at a press conference, the Prime Minister emphasized that the bank is a central pillar of his administration’s plan to stimulate the economy by providing capital to citizens currently “locked out of the system”.
The $2 million grant is intended to provide the initial capitalization for the institution, with additional funding available through soft-term loans. Prime Minister Friday noted that while these loans are offered at attractive rates—approximately 3% to 3.5%—his administration is carefully studying whether it makes economic sense to borrow further, given the nation’s existing debt profile.
The Prime Minister stated that his team is evaluating the “benefit of that advantage” to determine if borrowing for onward lending will generate enough value in the local economy to justify the cost. This cautious approach follows high-level technical discussions held in Taiwan with Director General Han and Foreign Minister Lynn, who both expressed a strong willingness to assist in the bank’s establishment.
Addressing public expectations, the Prime Minister clarified that the NDB will be managed on strict business principles rather than as a “charity”. The goal is to create a supportive environment offering mentorship and encouragement to help small businesses succeed.
“The success of a development bank is not how much it pays to its shareholder, which will be the government, but how much business it generates in the economy overall,” Friday explained. He further noted that the institution’s design takes into account governance concerns previously raised by the International Monetary Fund (IMF) to ensure the bank does not become a source of additional unsustainable government debt.
The legal framework for the NDB is already in an advanced stage. According to the sources, Attorney General Sarah Louise Mitchell and Dr. Jason Haynes have been tasked with drafting the necessary legislation.
The Prime Minister highlighted that the process has been highly collaborative, involving three or four public consultations across the country, including sessions in Bequia, Layou, and North Windward. These meetings were designed to gather public feedback and ensure the institution effectively addresses the lack of capital that currently acts as a bottleneck for productive local activities.
The establishment of the NDB is part of a broader shift toward private-sector-led development. By providing a dedicated source of funding for small and medium-sized enterprises, the government aims to encourage local entrepreneurs to transition into more productive and profitable sectors, such as modern agriculture and technical industries. Prime Minister Friday concluded that the commitment from Taiwan marks a significant step toward making the bank a reality and “putting money in people’s pocket” through sustainable economic growth.
