CIDB to give cheap loans

| 02/07/2009

(CNS): The leader of government business announced today that the Cayman Islands Development Bank (CIDB) will be offering low cost loans and mortgages to small business and individuals in financial trouble to help the community weather the financial storm. McKeeva Bush explained that the bank, which is under his ministry, would be launching this assistance programme on 13 July when loans would be given to those in need with a interest rates as low as one percent.

“This initiative is aimed at providing assistance and relief to small businesses affected by the downturn,” said Bush, who added that during the election campaign the UDP had promised to put in place measures to assist Caymanians to enable individuals and small business owners to make it through the economic downturn.

Speaking at the new government’s first live press briefing, the LoGB explained that small businesses would be able to access funding for debt consolidation and get lower interest rates of between one and 5 percent as well as loans for operational and capital expenses from the CIDB.

Bush added that the second part of the initiative would be tohelp individuals who are about to lose homes or who are in financial trouble and that the bank would provide mortgages and help people consolidate their existing personal debt and property loans. He said the intention would be to help people with arrears to spread the payments over manageable periods and to providing financing for insurance premiums and hurricane shutters.

Although he stated that it was unrealistic to think this initiative was going to solve all the problems, as there was a limit to the funding, he hoped it would minimise the fallout from the crisis.

“Business owners and residents have struggled during this economic downturn and the CIDB will be able to help,” he said. “We have taken a holistic approach to the solution and we intend to form partnerships with other financial institutions in order to get more funding for the initiative.”

He added that the idea was to use the bank’s expertise in credit risk and management as would be the case for normal bank lending, but the main difference is that the initiative was structured to target specific areas where people needed the most help at very low interest rates. Bush explained that this initiative would form 12 percent of the total portfolio of the bank’s current loans but the bank would be investigating other funding options to enable it to increase the scope of the initiative and availability of loans. In short, the government has allocated a portion of the bank’s existing lending capacity just to this programme.

The LoGB also announced that government had appointed a new board for CIDB with Paul Byles as the chair. He looked forward to the bank serving the economy and he had great hopes for the future of bank and its involvement in the economy.

Ralph Lewis, the bank’s managing director, said that over the next week or so the staff would be engaged in training and fine tuning the mechanics of how loans would be assessed and awarded but full details of how people can apply would be announced shortly.

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  1. Anonymous says:

    "Go UDP!

    PPM would have never thought of any way to assist Caymanians.

    I’m surprised there is any money left after PPM, but Go UDP!"



    PPM did all the below and more and you have the nerve to say the above…

    1. Affordable housing/build on your own land which included lower interest fees and lower monthly payments…not like the housing  mess Mac did
    2. More money for Social Service (which help contribute to the deficit)
    3. New Schools
    4. New roads
    5. Scholarships etc……


    You people are really HARD TO PLEASE  if PPM didn’t do anything to the Country we would have money not like when Mc was in…..nothing to show and money missing….hope you all know Bush and the word “Bank” don’t go in the same sentence.

    You know what im glad PPM spent the Money on the Country and didn’t leave any to go "missing"

    • Anonymous says:

      Well, of course we all hope this will be a success. My only fear is that old nagging lesson that started at my parents’ knees and was proved by Doucet/Interbank/Sterling Bank/ BCCI/Bernie Madoff/Alan Stanford etc ad infinitum: If it sounds too good to be true, it probably is.

  2. Anonymous says:

    When the PPM had the opportunity to help the people of these islands – as myself, a small business owner – they did not ACT! We (the people) are looking for a government that ACT on any positive idea ~ whether it be that they reinvent the wheel are they work with goals set by a previous government. By the way ~ almost all governments aim to achieve any milestone that is reasonable and feasible, even if it was set by a past govenment. This is commendable…..BUT mind you if it fails should be blame Charles C too? I think your answer won’t be ‘yes’.

    And secondly, may I ask, since you seem to be so experienced in small business owning dealings, are you not going to benefit! Oooops maybe I am presuming you actually have experience and therefore can speak on such issues! If you were smart enough you would realise that it does not matter who is doing what…it matters that someone is doing something.

    Thirdly, if you hadn’t noticed, the arguement over PPM and UDP is over….because the people that are suffering, as myself, don’t really care where the money is coming from to help to feed our children…….WE CARE THAT THE MONEY HAS FINALLY COME!


    Thanks and sincerely,

    Small Business owner from the district of West Bay

  3. Visible Hand says:

    This sounds like a great way to destroy the capital base of the CIDB.  Rather than making loans to people who can’t afford them, the CIDB should be helping start up business to promote job creation.  The Government should also get rid of the 60% local ownership rule and the rights of local business to object to new businesses at the Trade and Licence Board.  THis would promote the influx of capital and provide better competition for many many services in Cayman – with the effect that the cost of living would come down.  The 60% law only helps the very wealthy make even more money through inflated profit margins and the barriers to market entry for competitors.

  4.  A PPM initiative???

    Well there was no follow through…

    When I was "developing" my small business restaurant, we rented a spot at Alexander Place in Industrial Park to start working on the inside to outfit it as a restaurant. We built the kitchen, tiled the floors, painted huge murals on the walls.

    It was the only Fish Fry restaurant between Bodden Town and West Bay. It was called Cayman Fish Fry and the murals on the walls depicted Caymanian culture, catboats and more. A true celebration of things Caymanian.

    The reason that I was turned down for my loan was because, and I quote, "The Rent, at $2000 per month, cannot be considered a contribution to your business." WTF?? Are you kidding me? 

    CIDB even went by the restaurant and then called me and said they don’t see any work going on in the restaurant. Well DUH!…  Waiting on your loan, HELLO, is anybody home?

    We had to pay rent so that we could outfit the restaurant after the load of ridiculous requirements, just for the kitchen alone, which by the way, places like A La Kabob by the Cinema, don’t have.

    So I gave up on the Cayman Islands and I left.

    I hope that the LOGB, personally reviews loans for the people who need the help, because people needed help from a long frickin’ time ago.

    Good Luck to all Small Business owners in Cayman. I sincerely hope this doesn’t end up being hogwash.

    I am more than prepared to confront any backlash my comments will undoubtably incite.

    Bring it on.

    Dustin M. Jackson

  5. Anonymous says:

    Thanks Mr. Bush i can final get my car back and on the road and my car wash business going. thank s again

  6. Wes' Bay-a says:



    This was PPM’s initiative!!!!! Stealing ideas again!!!!!!!!!

    In fact, this was personally said by Chuckie at one of the PPM meetings during the election campaign.

    I see he has ‘stimulated’ the UDP’s mind………..hence the UDP’s Stimulas Package!!!!

    • Islander@kaibo says:

      To:Wes’ Bay-a (not verified) on Fri, 07/03/2009 – 11:10.   ! In fact, this was personally said by Chuckie at one of the PPM meetings during the election campaign.

      NB. Chukie says a lot of things. He has a way with words. Don’t be fooled!!!

      Its a nice sunny day up here though!

  7. anonymous says:

    Kinda sounds a lil bit like First Cayman Bank being re-invented……ummmmmmm Hope there is something in place to cover for re-payment defaults but figure that is probably not a concern of Mac’s right? Keeping fingers crossed that it all works out beautifully though….

  8. Thankful says:

     wondered what that sound was. Now I know it was the party faithful heading to the trough

    lol…hahaha…we are some witty people…I love my Caymanian people. 


  9. poloma sufferer says:

    THANK YOU  MCKEEVA! Now i can finally afford hurricane shutters for my house!UDP IS IS FOR US ,CAN’T YOU SEE! 

  10. Anonymous says:

    This isn’t a heck of a lot to go around, but I just hope that the additional funding options for CIDB that are being reviewed do not include the IMF/World Bank!


    • Anonymous says:

      Go UDP!

      PPM would have never thought of any way to assist Caymanians.

      I’m surprised there is any money left after PPM, but Go UDP!

  11. Anonymous says:

    I wondered what that sound was. Now I know it was the party faithful heading to the trough.

  12. Anonymous says:

    Trust that we will find Cora Grant’s name on that CIDB board.  She is one selfless person who is committed to looking out for Caymanians, and would certainly do ever thing in her power and the law to ensure that all get a fair chance for financial assistance.  In fact, I beleive that she is/was the manager of smal business at one of the  larger commercial local banks and Deputy Chair of the CIDB about eight years ago.  It would be a pity if she were not to be found on this board this time around.  Does anyone know if she is? 

  13. Anonymous says:

    As far as I can gather, an MLAS salary is somewhere around 100,000 bucks a year…Why haven’t the oppostion found it neccesary to show up for a full days work since election….Are they sick or do they have a Doctors note? Nothing personal, but this IS our money at work, which we evidentally have very little of, so why can’t ALL of our government, show up for work, and when in the LA, sit up straight, act interested, and stay off ther blackberrys… It is really a disgrace…I challenge those of you who have been laid off to go and sit in the LA and watch the behavior of these clowns. An honest days work?