A US$200 million Portfolio Guarantee from the government of Canada allows the Caribbean Development Bank to expand its lending capacity to meet the needs of its borrowing member states, says President of the CDB Daniel Best. The Canadian government made the announcement at the recent G7 Summit.
The bank in a press statement said the Portfolio Guarantee is expected to play a catalytic role in optimizing CDB’s balance sheet, freeing up substantial risk capital and increasing lending headroom to advance solutions across the region.
CDB’s president Daniel Best in expressing gratitude said Canada’s support is a game-changer for the Bank and the region. The Portfolio Guarantee reflects the transformative potential of partnerships and financial innovation to drive meaningful development outcomes. This initiative will expand our lending capacity to address the critical needs of our Borrowing Member Countries while reinforcing the Bank’s financial strength and reputation. We are incredibly grateful to Canada for their leadership and confidence in CDB, and we look forward to delivering on the promise of this partnership for the people of the Caribbean.”
The announcement is part of Canada’s broader G7 initiative to drive innovative financing at multilateral development banks, dedicating up to US$400 million in portfolio guarantees to the Inter-American Development Bank (IDB) and CDB. This funding is anticipated to unlock up to US$1.6 billion in new development financing to address challenges across Latin America and the Caribbean.