The Caribbean Development Bank (CDB) has unveiled a groundbreaking initiative, the Trade Finance Guarantee Programme (TFGP), aimed at enhancing trade financing opportunities for businesses across the Caribbean, with a particular emphasis on Micro, Small, and Medium-sized Enterprises (MSMEs). The announcement was made during the Caribbean Association of Banks Annual Conference held at the Hyatt Regency in Trinidad and Tobago.
Dr. Isaac Solomon, Vice President of Operations at CDB, described the TFGP as a pivotal component of the bank’s broader strategy to foster regional economic growth. He emphasized that the programme is designed to mitigate risks for banks and improve access to international markets for local businesses. ‘This Guarantee Programme sits squarely in the middle of our transformation agenda – it is anchored on accelerating transformative financing, advancing opportunities for MSMEs to thrive, and scaling impact through partnerships,’ Dr. Solomon explained.
The TFGP aims to reduce the risk exposure of confirming banks by providing partial guarantees against defaults by issuing banks within CDB’s 19 Borrowing Member Countries. This approach is expected to strengthen relationships with correspondent banks, unlock additional capital, and expand trade finance activities throughout the Caribbean.
Dr. Solomon highlighted the broader significance of trade finance, noting that it serves as a catalyst for economic growth, employment opportunities, and regional resilience. ‘Adequate trade finance is not just a financial service; it is an enabler of growth, job creation, and regional resilience. By enabling more transactions, this programme will directly support efforts to grow exports and increase foreign exchange earnings,’ he stated.
The programme will initially undergo a pilot phase in collaboration with JP Morgan and IDB Invest, targeting 14 banks across six Caribbean nations. The pilot phase will include capacity-building support to enhance the trade finance capabilities of these banks. The ultimate goal is to develop a sustainable, long-term platform that continues to promote trade facilitation in the region.
In addition to the launch, CDB hosted a panel discussion on the future landscape of trade finance in the Caribbean. The session explored how improved access and affordability can stimulate enterprise growth, featuring insights from industry leaders such as Mr. Stephen Thomas of the Caribbean Financial Institutions Team; Ms. Joanna Charles, General Manager of Antigua Commercial Bank; Mr. Bevon Alvarez, General Manager of Republic Bank; and Ms. Lisa Harding, CDB’s Division Chief of Private Sector Development.
CDB reiterated its commitment to collaborating with regional financial institutions to ensure the success of the pilot programme. The bank also positioned the TFGP as a flagship initiative intended to advance trade development across the Caribbean.