-- Posts Summary: Airlines and Airports operating and not operating --

[Antigua] Loan for LIAT finalised as PM Browne visits Venezuela

News and information which is politically-based and directly or indirectly relevant to Caribbean aviation
Post Reply
User avatar
bimjim
Forum Administrator
Forum Administrator
Posts: 32770
Joined: Fri May 12, 2006

[Antigua] Loan for LIAT finalised as PM Browne visits Venezuela

Unread post by bimjim » Tue Nov 05, 2019

http://abstvradio.com/loan-for-liat-fin ... venezuela/

[Antigua] Loan for LIAT finalised as PM Browne visits Venezuela
November 5, 2019

Prime Minister Hon. Gaston Browne visited Venezuela today where he signed the loan agreement for US$15.8 million which will provide badly-needed capital for Antigua-based regional carrier, LIAT. Prime Minister Browne says the loan injection would benefit the entire region served by the airline. He is quoted as saying, “LIAT is our infrastructure that links our scattered islands into a single economic space and it breathes oxygen into our tourism industry.”

The Prime Minister also formalized Antigua and Barbuda’s membership in the Bank of ALBA. ALBA is the Spanish acronym for the Bolivarian Alliance for the people of our America, conceptualized by the late Venezuelan President Hugo Chavez and the late Cuban leader Fidel Castro. The alliance was set up as an alternative to the hemispheric trade and economic policies in Washington. The ALBA bank was established in 2005 to provide development support to the countries in the alliance.

Prime Minister Browne also held bi-lateral talks with Venezuela ‘s President Nicolas Maduro; both leaders agreed to work more closely to achieve sustainable development in the region.

Prime Minister Browne returned to Antigua Monday night.

User avatar
bimjim
Forum Administrator
Forum Administrator
Posts: 32770
Joined: Fri May 12, 2006

Re: [Antigua] Loan for LIAT finalised as PM Browne visits Venezuela

Unread post by bimjim » Wed Nov 06, 2019

https://www.stlucianewsonline.com/antig ... at-shares/

Antigua to get $40 million loan for purchase of LIAT shares
November 5, 2019

(DOMINICA NEWS ONLINE)

A resolution has been authorized in the Parliament of Antigua and Barbuda, giving the St Johns government the authority to secure a loan of ECD $40 million to purchase additional shares in regional carrier, LIAT.

The loan will be sourced with Banco del ALBA.

Members of Parliament voted for the resolution on Tuesday, in a move to help save the struggling regional carrier.

Finance Minister, Gaston Browne anticipates that the changes will make LIAT more efficient and profitable but also warned that it would come with “cuts including reduction in salary and wages”.

” A condition of this new capital would be that there has to be cuts including a reduction in salary and wages,” he said.

Browne, who is also the Prime Minister of the twin-island state, also anticipates a shifting around and possible change in the directorship of LIAT.

“I’m pretty sure that there’ll be some changes even with the directorship of LIAT. We have to make sure that we have a cadre of competent people and we may even create the space for members in the private sector as well to participate,” Browne said.

He said sometime in September, as early as the 11th, he negotiated the loan to facilitate the acquisition of the additional funds.

It will be termed out over a period of ten years at six per cent per annum, with an annual repayment of about six million ECD about 2.2 million U.S. dollars a year.

$800,000 of the loan amount will be utilised to cover the transactional expenses at a percentage of two (2) per cent, as well as a one (1) per cent FFE contribution, which Browne explained is a contribution to the bank’s equity.

This loan amount will add to the USD $500,000 dollar contribution made by the government a week ago, and a similar amount made to the airline earlier this year.

In addition, the Antigua and Barbuda government will also be required to contribute to a social fund, which according to the prime minister, is a precedent condition when seeking funds from ALBA. The remaining the USD $15 million will be utilised to recapitalize LIAT.

User avatar
bimjim
Forum Administrator
Forum Administrator
Posts: 32770
Joined: Fri May 12, 2006

Re: [Antigua] Loan for LIAT finalised as PM Browne visits Venezuela

Unread post by bimjim » Wed Nov 06, 2019

https://www.antiguaobserver.com/pm-brow ... venezuela/

PM Browne Secures LIAT Loan in Successful Visit to Venezuela
November 5, 2019

PM Browne left Antigua and Barbuda today on a quick visit to Venezuela that saw Antigua and Barbuda being formally inducted into ALBA Bank as a new member, as well as the signing of the Financing Agreement relating to the loan of US$15.8 million for injection into LIAT.

On his arrival PM Browne was met on the tarmac with an honour guard by Vice Minister Yuri Pimentel of the Ministry of Foreign Affairs, and he was then whisked away to his meetings in downtown Caracas.

The 22nd meeting of the Ministerial Council and the 72nd meeting of the Executive Board of ALBA Bank were held in Caracas Venezuela during the morning at the headquarters of the Central Bank of Venezuela.

The Governor of the Central Bank Mr Calixto Ortega welcomed PM Browne and stated how pleased he was that Antigua and Barbuda was becoming the seventh member of ALBA Bank, joining Venezuela, Cuba, Nicaragua, Dominica, St Vincent and the Grenadines and Bolivia.

During the meeting, PM Browne formally deposited the instrument that allowed Antigua and Barbuda to join the Bank, and he expressed his satisfaction at the good financial position of the Bank which would, in his view, engender trust and confidence.

Both St Vincent and the Grenadines and Dominica, in offering their congratulations, indicated that they fully supported the ‘bold move’ by Antigua and Barbuda to join the Bank.

ALBA Bank was established in 2005 as the brainchild of former President of Venezuela, Hugo Chavez Frias, and the former President of Cuba, Fidel Castro, and was envisioned as a regional development bank that would provide resources to fill the development needs of the countries of the region.

In signing the Financing Agreement, PM Browne indicated that although the Government of Antigua and Barbuda was assuming the financial liability, in fact the loan injection into LIAT would benefit the entire region that LIAT served.

‘LIAT is our infrastructure that links our scattered islands into a single economic space,’ Mr Browne said, ‘and it breathes oxygen into our tourism industry.’

After the meetings at the Central Bank, the Prime Minister had a bilateral meeting with the President of Venezuela, Nicolas Maduro Moros in the Miraflores Palace.

Both leaders reviewed the situation in Latin America and the Caribbean and agreed to work more closely together to achieve the goals of sustainable development in the region. Accompanying President Maduro in the meeting was Vice President Delcy Rodriguez; minister of foreign affairs Jorge Arreaza; and Vice Minister in the ministry of foreign affairs and chairman of the Executive Board of ALBA Bank Raul Li Causi.

PM Browne returned to Antigua and Barbuda last evening.

Post Reply

Return to “Aviation-related Politics”