Dominica has secured parliamentary approval for a concessional IDA loan to refinance debt, with a 0.75 per cent interest rate and 40-year repayment period.
Dominica: The Government of Dominica has announced a significant financial milestone, sharing that it has secured Parliament's approval for a highly concessional loan from the International Development Association (IDA). According to the Government, this loan is aimed at refinancing debt and strengthening Dominica's fiscal resilience, with an annual interest rate of 0.75 per cent and a 40-year repayment period, including a 10-year grace period.
The financial recovery strategy was approved during the Second Meeting of the Fourth Session of the Eleventh Parliament which took place at the House of Assembly on Tuesday, September 22, 2026.
The Government shared that the favourable loan terms are expected to ease debt-servicing pressures, improve liquidity and allow Dominica to replace more expensive borrowing with lower-cost financing.
Speaking in Parliament on Tuesday, the Minister of Finance, Economic Development, Climate Resilience and Social Security, Dr. Irving McIntyre, explained that this measure is part of the Government's broader efforts to restore Dominica’s fiscal strength before the economic shocks experienced between 2015 and 2022.
“We have been approaching this on several fronts including reducing non-essential expenditure, implementing deliberate cost-saving policies and making unprecedented targeted investments to grow the economy. We have been building the country’s resilience to shocks and reducing the country’s debt,” stated Finance Minister Dr. Irving McIntyre.
He noted that the economy has been experiencing steady growth and further highlighted the Government's efforts to build financial reserves and reduce the country's debt-to-GDP ratio.
“The economy has been growing steadily fuelled mainly by activities in the productive sectors and ongoing unprecedented infrastructure development. We have been building savings for rainy days and incorporating resilience in our investments while our debt to GDP has been declining,” McIntyre stated.
Moreover, the Minister of Finance also informed the member of Parliament that progress has been made on a debt-for-development swap which is expected to provide an additional EC$108.7 million at an interest rate of less than two per cent. The Government plans to utilise this financing to pay off more expensive loans, allowing it to save money and free up funds for projects that strengthen resilience and support economic growth.