NASSAU, Bahamas -- In a significant move that gives the Caribbean Development Bank (CDB) more lending power, the CDB has announced a 150 per cent increase of funds in its portfolio.
Speaking at a press briefing at the Sheraton Nassau Cable Resort, Tuesday, May 18, President of the CDB, Dr Compton Bourne said this has ‘raised the bar’ for the CDB.
“For some time now, certainly for the better part of the year, we have been seeking to increase the bank’s general capital,” said Dr Bourne. “And that proposal was accepted by the Governors of the bank a short while ago.”
The increase, which takes the fund to approximately $1 billion, is the only one since 1990. Dr Bourne said that shareholders of the bank thought the move necessary given the current economic challenges being experienced worldwide.
He added that the increase would also enable the bank to provide a higher level of assistance to borrowing member countries in the Caribbean.
“As we all know, countries in Europe, North America and the Caribbean are experiencing economic difficulties, so the decision to commit is not a decision that could have been made easily by the various countries, but the fact that it was made even in the difficult fiscal circumstances including by countries that are experiencing problems, it shows the significance of this decision.”
He said the bank will ‘effectively utilize borrowing capital to finance ‘priority’ areas including economic and social infrastructure such as educational facilities.
Currently, the CDB is financing a project, which will improve the social and economic infrastructure necessary for employment and income generation in the Family Islands.
The Bahamas will receive a $10 million loan and a $37,000 technical assistance grant for the project. The Bahamas Government will sign the loan during the 40th Annual Meeting currently being held in New Providence.
