WASHINGTON / BARBADOS – IDB Invest and the Caribbean Development Bank, CDB, announced a new strategic partnership to support private sector development in the Caribbean. This renewed collaboration focuses on expanding financing for trade and unlocking new opportunities for businesses across the Caribbean, placing private sector-led growth at the forefront of a shared agenda.
The partnership reflects a shared vision to empower the Caribbean’s private sector as a driver of economic development. By working with financial institutions across the region, the collaboration aims to improve access to finance for small and medium-sized enterprises (SMEs), expanding their opportunities for trade, investment, and long-term development.
A key highlight of the enhanced partnership is CDB’s new Trade Finance Guarantee Program, a significant milestone in regional financial innovation. As part of a pilot phase, CDB will enter into a Risk Participation Agreement (RPA) with IDB Invest. RPAs enable the sharing of risk associated with loans and other obligations across institutions. These arrangements will further expand the reach and impact of the initiative.
Trade finance plays a critical role in facilitating both global and regional commerce. In Latin America and the Caribbean, limited access to timely trade finance remains a significant barrier for businesses, particularly SMEs. Trade finance helps reduce financing gaps between trading partners and supports participation in regional and global markets.
Beyond trade finance, the two institutions are laying the groundwork for joint originations and co-financing of private sector projects across the Caribbean. This will expand the reach of both institutions while fostering a more dynamic and resilient business environment.
Lisa Harding, division chief, private sector, CDB, said: “This partnership and the Trade Finance Guarantee Programme will enhance access to trade investment across the Bank’s member countries, crowd in private sector resources, foster economic growth and deepen regional integration.”
