CDB makes US$140M available to counter COVID-19 pandemic, other disasters

(Caribbean Development Bank Press Release) The Board of Directors of the Caribbean Development Bank (CDB)
met this week and approved up to US$140 million to be used by the
Bank’s Borrowing Member Countries to tackle the fallout of the COVID-19
pandemic and other shocks to their economy.

“The economic and social shock of the COVID-19 pandemic will likely be severe in most Caribbean countries. There is the additional concern that the situation could be exacerbated in the near future given our Region’s vulnerability to natural disasters, and with the hurricane season less than two months away. We, at CDB, stand ready to assist Caribbean countries to alleviate these shocks,” said CDB President Dr. Wm. Warren Smith.

Taking into account the high degree of uncertainty, it is expected
that at least 1-2% could be shaved off previous estimates of global
growth as a result of COVID-19. For the Caribbean Region, as a whole,
the impact could be even more profound.

“The extent of decline of gross domestic product will depend on the
duration of the pandemic and the effectiveness of the policy responses
by the countries. Our goal is to ensure our Borrowing Member Countries
get access to appropriate financing during the COVID-19 pandemic and to
be their partner in the post-crisis recovery,” said Dr. Smith.

CDB has responded to its Borrowing Member Countries’ need for
assistance during this crisis by increasing the limit on its
policy-based loans. These loans are designed to respond to exogenous
shocks and to support economic growth and poverty reduction through
policy reforms. Since the first policy-based loan in 2006, CDB has
provided some US$875 million for such loans.

CDB is often the main partner that a number of the Borrowing Member
Countries rely on for financing, technical assistance and policy advice
during crises.

“The US$140 million allocation is the first of a package of
assistance that CDB is developing to assist our Borrowing Member
Countries to cope with COVID-19. Our financing and technical assistance,
during this period, will be directed mainly towards the most vulnerable
within our societies and give the highest priority to strengthening
social safety nets,” stressed CDB President Dr. Smith.

For media inquiries, please contact:

Lothar Mikulla, Communications Officer, +1 (246) 539-1784, mikullal@caribank.org

About the Caribbean Development Bank

The Caribbean Development Bank is a regional financial institution
established in 1970 for the purpose of contributing to the harmonious
economic growth and development of its Borrowing Member Countries
(BMCs). In addition to the 19 BMCs, CDB’s membership includes four
regional non-borrowing members – Brazil, Colombia, Mexico and Venezuela
and five non-regional, non-borrowing members; i.e., Canada, China,
Germany, Italy, and the United Kingdom. CDB’s total assets as at
December 31, 2018 stood at USD3.24 billion (bn). These include US$1.75
bn of Ordinary Capital Resources and US$1.49 bn of Special Funds
Resources. The Bank is rated Aa1 Stable with Moody’s, AA+ Stable with
Standard & Poor’s and AA+ Stable with FitchRatings. Read more at
caribank.org.