State sector ‘wastage’ contributing to underperformance of regional economies – CDB president

annual media briefing in Barbados that if the region were to unlock its considerable potential it needed to both “offer services that promote efficiency and cost-competitiveness,” and focus on “fostering inclusive growth and protecting vulnerable groups in our society,” on the one hand and, on the other, ensure that government is “financed by revenue systems that meet the sufficiency criterion while promoting equity and economic efficiency.”

Smith disclosed that the CDB’s success in mobilizing finances had meant that it had approved a total of US$306 million in loans and grants to Caribbean countries last year, an amount that represented the highest amount approved in five years. The three largest beneficiaries of last year’s lending by the bank were Belize, St Lucia and Suriname.

Last year, the CDB also commenced implementation of the US$ 375 million United Kingdom/Caribbean Infrastructure Partnership Fund (UK CIF) a facility designed to finance transformational infrastructure projects in parts of the region.

In noting that the bank had “reached noteworthy milestones in deepening our strategic partnerships and successfully mobilising financial resources,” Smith said borrowing member countries were now better positioned “to craft appropriate responses to their development challenges.”

In 2016 the CDB also signed a Credit Facility Agreement with Agence Française de Développement that included a US$33 million loan to support sustainable infrastructure projects and a €3 million grant to fund feasibility studies for projects eligible for financing under the credit facility.