The Caribbean Development Bank (CDB) is providing loans totalling USD 65 million to four shareholder governments of Regional airline LIAT (Barbados, Antigua and Barbuda, St. Vincent and the Grenadines, and Dominica) to assist with the purchase of aircraft in the context of a Fleet Modernisation Project. The loan agreements provide for the loans to be on-lent to, and repaid by, LIAT over a thirteen-year period, following a grace period of two years. Co-financing for the Project is being provided by shareholder equity contributions and from the sale of LIAT's existing aircraft. The loans were approved by the Bank's Board of Directors during a meeting at its Headquarters in Barbados on July 18, 2013. The Fleet Modernisation Project involves: the replacement of LIAT's aging fleet through a combination of lease and purchase of aircraft; financing the transition costs associated with the changeover; the upgrade of maintenance facilities; and other institutional strengthening activities. The Project provides LIAT with the most cost-effective means of improving the reliability of its service and consequently its contribution to the socio-economic development of the Region. It will have significant impact on the operational efficiency and financial performance of the airline. Realisation of these results will require the involvement of all stakeholders. Reliable and efficient air transportation is essential for connectivity, mobility and accessibility within the Region, and for some of CDB's borrowing members, LIAT provides the only air links with the rest of the Region. This Project is consistent with CDB's strategic objective of supporting Regional cooperation and integration and contributes to CDB's overall mandate of reducing poverty through social and economic development. Image Source: LIAT Facebook page