CDB’s regional non-borrowing countries back Barbados’ new development financing model for poor countries

Last Updated on Tuesday, 20 June 2023, 14:12 by Denis Chabrol

CASTRIES, ST Lucia, June 20 (DW).-Regional non-borrowing members of the Caribbean Development Bank (CDB) on Tuesday backed Barbados’ plan for rich countries to fork out billions of dollars in grants and cheap loans to poor nations like those in the Caribbean to help them grapple with the impacts of climate change.

“The Bridgetown Initiative 2.0 could generate sufficient momentum and energy to enable the development of a New Regional Financial Architecture, more inclusive for developing countries, more responsive to the current economic and financial challenges, with less preponderance of conditionality and oriented towards ensuring the welfare of the people,” Venezuela’s Alternate Governor for the CDB, Ambassador Raul Licausi told the opening of the 53rd Annual Meeting of Board of Governors.

Speaking on behalf of the CDB’s four regional non-borrowing members-Brazil, Colombia, Mexico and Venezuela- Mr Licausi said Venezuela also endorsed the regional bank’s focus on access to financing this year because it is “very relevant” for the current economic situation and it is fundamental to the development process in emerging economies.

Noting that there is a global scarcity of financing, the Venezuelan Alternate Governor to the CDB agreed that access to finance must be reoriented t0 allow international financial institutions to provide greater support to developing countries. Like the CDB President, Mr Licausi said access to finance must not only be determined by income but must be focussed  on addressing the vulnerabilities of Caribbean economies to external shocks, natural disasters, and variations in international markets, especially in the countries with the greatest difficulties.

The Bridgetown Initiative 2.0 touts the need to change the terms on which monies are loaned and repaid by taking into account the impact of natural disasters on existing debts while seeking new loans; the need for development banks to loan an additional US$1 trillion to developing nations for climate resilience, and and establish a new system with private sector support to fund climate mitigation and reconstruction after a climate disaster.