Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

125 to the schemes so attractive and the Bank’s staff so helpful that it expressed a desire to deal directly with the Bank. Industrial Credit Fund The Industrial Credit Fund (ICF) was the Schemes’ success story during this period. In 1991, the ICF was chosen as the facility through which a new loan from the European Investment Bank (for projects in manufacturing, agro-industry and tourism) would be administered. This was a good fit for the ICF which was already lending for these activities. Ten years later, it was also decided that the ICF would manage the Tourism Loan Fund (of $30 million) that Government established to provide concessionary finance to small and medium-sized hotels and tourism- related enterprises. During 2001 as well, the ICF expanded its scope to include information and technology, construction, engineering, research and development as well as several important services. In 2009, among other things, the loan ceiling was raised and the maturity period for loans extended. Demand for the resources of the ICF was influenced largely by the level of commercial bank liquidity and the performance of individual sectors. It is not surprising, therefore, that there was generally steady growth in activity between 1988 and 1993 when bank liquidity and economic activity were quite weak. Calendar 1991 was a very good year for the Fund, with loan approvals and disbursements rising by 38 per cent and 74 per cent, respectively; net income rose by eight per cent and accumulated earnings reached $10.1 million. Growth exceeding the ten-year average was recorded for loan approvals in 1993 and for disbursements in 1996. High liquidity had a significantly negative impact on the demand for loans in 1994, 2000 and 2002. However, the ICF recorded its highest and second highest levels of loan approvals ($21.5 million and $21.2 million) in 2001 and 2006, respectively. During the latter year, this caused loan commitments to exceed resources, but another $23.8 million was said to be available from external lenders if required. With the onset of the economic slowdown, both loan approvals and disbursements moderated. Chapter 4: Maturity, Modernisation and Issues of Governance: 1987 and Beyond