The Caribbean Development Bank (CDB) has announced a new strategic partnership with IDB Invest, the private-sector arm of the Inter-American Development Bank, aimed at expanding access to finance and stimulating private sector-led growth across the Caribbean.
According to the CDB, the renewed collaboration centers on increasing trade financing opportunities and “unlocking new opportunities for businesses across the Caribbean,” with a strong emphasis on small and medium-sized enterprises (SMEs).
“The partnership reflects a shared vision to empower the Caribbean’s private sector as a driver of economic development,” the CDB said in a statement. “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 major highlight of the initiative is the CDB’s new Trade Finance Guarantee Programme, described by the bank as a “significant milestone” in regional financial innovation. As part of the programme’s pilot phase, the CDB will sign a Risk Participation Agreement (RPA) with IDB Invest. RPAs allow institutions to share the risk tied to loans and other financial obligations, improving the viability of commercial transactions.
“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,” said Lisa Harding, Division Chief of the CDB’s Private Sector Division.
The CDB emphasized the importance of trade finance in supporting commerce, noting that access remains a key hurdle for many businesses in the Caribbean, especially SMEs. “Trade funding helps reduce financing gaps between trading partners and supports participation in regional and global markets,” the Bank stated.
Beyond trade finance, the two institutions are also laying the foundation for joint originations and co-financing of private sector projects, aiming to strengthen economic resilience and competitiveness throughout the region.
“CDB and IDB Invest will also collaborate on capacity-building initiatives to strengthen the bank’s broader private sector operations throughout the Caribbean,” the Bank added. “These efforts will deepen institutional readiness, further accelerate innovation and lead to the development of new financial instruments tailored to the region’s evolving needs.”
The announcement signals a renewed commitment by both institutions to bolster economic transformation through private sector engagement, regional integration, and targeted financial solutions for Caribbean businesses.
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