The Inter-American Development Bank (IDB), CAF – Development Bank of Latin America and the Caribbean, and the Caribbean Development Bank (CDB) have jointly launched the Caribbean Multi-Guarantor Debt-for-Resilience Joint Initiative, unveiled during COP30 in Belém. This landmark collaboration aims to strengthen regional disaster preparedness while easing the heavy debt burdens faced by Caribbean nations.
The new initiative leverages guarantees from multilateral development banks (MDBs) and private-sector partners to create much-needed fiscal space. This approach allows Caribbean governments to invest in resilience measures and regional public goods before disasters occur — without taking on additional debt.
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The Joint Initiative is built around three core objectives:
- Expanding debt-for-resilience swaps to unlock fiscal room for vital resilience investments.
- Enhancing collaboration among MDBs, national governments, and private-sector partners to scale up and streamline these types of interventions.
- Boosting transparency and accountability through improved monitoring, evaluation, and reporting standards to attract greater investment.
To support these goals, the partners plan to establish a facility under a new Framework Agreement that will coordinate multi-guarantor participation in debt-for-resilience swap transactions. Each swap will be adapted to the individual country’s development priorities, debt management strategies, and the specific policies of participating guarantors.
The institutions will also work together to set shared taxonomies, key performance indicators (KPIs), and common principles for guarantee terms, aligning all standards with global norms for climate resilience financing.
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By simplifying the multi-guarantor process, this initiative is expected to:
- Bring in new and non-traditional guarantors
- Enable larger and more cost-effective transactions
- Speed up deal execution
- Strengthen investor confidence through unified reporting frameworks
A key feature of every debt-for-resilience swap will be the inclusion of a regional public-goods component, ensuring that each transaction contributes to strengthening the Caribbean’s collective climate resilience.
The Joint Initiative marks a major step toward building a more secure and climate-ready future for the Caribbean, where debt relief and resilience investment work hand in hand.
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