Caribbean Development Bank unveils new Trade Guarantee Progr...

Caribbean Development Bank unveils new Trade Guarantee Programme to engage region's bankers - Dominica News Online

The Caribbean Development Bank (CDB) has introduced a new initiative called the Trade Finance Guarantee Programme (TFGP), aimed at boosting trade financing opportunities for businesses across the Caribbean, with a special focus on Micro, Small, and Medium-sized Enterprises (MSMEs). This announcement was made during the Caribbean Association of Banks Annual Conference at the Hyatt Regency in Trinidad and Tobago, according to a CDB release. During the event, Dr. Isaac Solomon, Vice President of Operations at CDB, described the TFGP as a key element in the bank’s broader strategy to facilitate regional economic growth. He highlighted that the programme is designed to reduce 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,” explained Dr. Solomon. The write-up described the core aim of the TFGP as lessening “the risk exposure of confirming banks by providing partial guarantees against defaults by issuing banks within CDB’s 19 Borrowing Member Countries.” This approach seeks to strengthen relationships with correspondent banks, unlock additional capital, and broaden trade finance activities throughout the Caribbean. Dr. Solomon emphasized the importance of trade finance beyond mere banking services, noting that it serves as a catalyst for economic growth, employment opportunities, and regional resilience. He stated, “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.” As per the media release, initially, the programme will undergo a pilot phase, partnering with JP Morgan and IDB Invest. It will target 14 banks across six Caribbean nations, providing them with capacity-building support to enhance their trade finance capabilities. The bank outlines its ultimate goal as developing a sustainable, long-term platform that continues to promote trade facilitation in the region. In addition to the launch, CDB reportedly hosted a panel discussion on the future landscape of trade finance in the Caribbean. The session examined how improved access and affordability can stimulate enterprise growth, with contributions 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. During the event, CDB reiterated its dedication to collaborating with regional financial institutions to support the success of the pilot programme. The bank also positioned the TFGP as a flagship initiative intended to advance trade development across the Caribbean.

During the event, Dr. Isaac Solomon, Vice President of Operations at CDB, described the TFGP as a key element in the bank’s broader strategy to facilitate regional economic growth. He highlighted that the programme is designed to reduce 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,” explained Dr. Solomon.

The write-up described the core aim of the TFGP as lessening “the risk exposure of confirming banks by providing partial guarantees against defaults by issuing banks within CDB’s 19 Borrowing Member Countries.”

This approach seeks to strengthen relationships with correspondent banks, unlock additional capital, and broaden trade finance activities throughout the Caribbean.

Dr. Solomon emphasized the importance of trade finance beyond mere banking services, noting that it serves as a catalyst for economic growth, employment opportunities, and regional resilience. He stated, “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.”

As per the media release, initially, the programme will undergo a pilot phase, partnering with JP Morgan and IDB Invest. It will target 14 banks across six Caribbean nations, providing them with capacity-building support to enhance their trade finance capabilities. The bank outlines its ultimate goal as developing a sustainable, long-term platform that continues to promote trade facilitation in the region.

In addition to the launch, CDB reportedly hosted a panel discussion on the future landscape of trade finance in the Caribbean. The session examined how improved access and affordability can stimulate enterprise growth, with contributions 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.

During the event, CDB reiterated its dedication to collaborating with regional financial institutions to support the success of the pilot programme. The bank also positioned the TFGP as a flagship initiative intended to advance trade development across the Caribbean.