In a landmark initiative to address the pressing issue of sovereign debt in the Caribbean, the Caribbean Development Bank (CDB) and the Inter-American Development Bank (IDB) convened a high-level gathering of regional and international financial experts. The event, held in Barbados from October 28 to 30, coincided with the annual meeting of the Latin America and Caribbean (LAC) Debt Group. Attendees included representatives from Debt Management Offices (DMOs), finance ministries, central banks, Multilateral Development Banks (MDBs), and private sector stakeholders. The primary objective was to explore innovative financing mechanisms and strategies to enhance debt management, foster resilience, and promote sustainable development across the region.
Dr. Isaac Solomon, Vice President (Operations) at CDB, underscored the critical role of effective debt management in ensuring long-term economic stability during his opening remarks. ‘The Caribbean has made commendable strides in fiscal discipline, modernizing debt frameworks, and restoring macroeconomic stability,’ he noted. ‘However, elevated debt levels and unfavorable debt dynamics persist, posing significant challenges to achieving the Sustainable Development Goals (SDGs) and adapting to emerging demands.’
Mr. Anton Edmunds, General Manager of the IDB’s Regional Country Department Caribbean, emphasized the need for enhanced coordination among MDBs. He highlighted the IDB’s commitment to fostering partnerships and developing innovative, solution-oriented debt transactions tailored to the unique needs of Small Island Developing States (SIDS).
Barbados’ Minister of Finance, Economic Affairs, and Investment, Hon. Ryan Straughn, called for greater collaboration among MDBs to better support Caribbean governments. He stressed that such cooperation is essential, particularly given the resource constraints faced by SIDS, which must balance development goals with debt management and fiscal stability. Minister Straughn reaffirmed the region’s unity and collective commitment to addressing critical issues like debt, which are vital to long-term development.