NASSAU, Bahamas, CMC—Ilan Goldfajn, President of the Inter-American Development Bank (IDB), says the Washington-based financial institution has been a steadfast partner for the Caribbean for over half a century.
“Our consultations with Caribbean governors ahead of our annual meetings in Chile provided an opportunity to discuss how our regional initiatives like ONE Caribbean can boost growth and resilience, and more generally, how our IDBImpact+ reforms can deliver more scale and impact for our membership as a whole,” he said at the end of the two-day XIII Annual Consultation with the governors of IDB Caribbean member countries on Monday.
The meeting here was part of preparations for the IDB and IDB Invest annual meetings, which will take place in Chile from March 26 to 30.
Representatives from the Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago attended the meeting.
Goldfajn told the closing ceremony that the last few years have tested the resilience of countries across the region and praised The Bahamas for showing “extraordinary determination.
“What is particularly commendable is The Bahamas’ commitment to reforms that lay the groundwork for long-term sustainability and growth. These include fiscal consolidation that has reduced financing needs, and comprehensive energy and resilience reforms.”
He said the IDB’s focus in Nassau has opened space for essential investments to address key challenges.
“We’re helping The Bahamas expand climate-resilient infrastructure by supporting the expansion of water systems through a US$100 million credit line, boosting the capacity and climate resilience of four airports with a US$35 million project, and increasing the use of solar energy through a nine million US dollar grant.”
Goldfajn said the IDB supports the Preparedness, Recovery, and Reconstruction Country Team (P2RCT), created after Hurricane Dorian, to make the government more responsive to disasters.
“We participated in this year’s groundbreaking debt-for-climate resilience operation, which will allocate nearly US$124 million to marine conservation projects. And IDB Invest, our private-sector arm, is providing US$10 million to improve liquidity for SMEs nationwide.”
He said that Caribbean regional economies have been among the best performing and are expected to grow faster than the overall Latin America and Caribbean region. However, he acknowledged that they also face critical structural challenges.
“First, the Caribbean is one of the world’s most climate-vulnerable regions. Second, violent crime continues to undermine the quality of life and slow economic growth. Third, limited investment slows productivity and limits the expansion of the private sector.”
He also said the Caribbean’s dependence on imported food leaves the region subject to price shocks that can make food unaffordable.
“Yet, within these challenges lie stories of success. Barbados is now a recognized world leader in climate action, with a holistic climate change response strategy embodied in the Roofs to Reefs Programme”.
Goldfajn said Jamaica has been a model of fiscal discipline and successful debt management while also making significant advances in sustainable agriculture and tourism. At the same time, Trinidad and Tobago’s National energy policy has demonstrated how governments boost renewable energy use while encouraging energy efficiency.
The IDB president said the bank is proud to partner with the region’s success stories, noting that last year, it approved US$790 million in new projects and programs, “and our pipeline for 2025 includes over US$1.1 billion to support infrastructure resilience, skills training, and access to credit for small companies, among many other things.
“And the debt-for-marine-conservation swap in the Bahamas was not the only one. We worked with Barbados on an operation that generated US$125 million in fiscal savings, which will be channeled into new resilience investments.”
He said that IDB is working on a bioeconomy project with Suriname that will provide rural Amazon villages with renewable energy, potable water supply, and telecommunication systems.
Goldfajn said IDB Invest is helping Caribbean companies advance the energy transition through the Caribbean Net-Zero and Resilient Private Sector Program with $120 million in financing and technical assistance.
He said the IDB Lab, the bank’s innovation lab and venture capital wing, will invest US$750,000 to support the Caribbean’s first health-innovation accelerator and incubator, helping strengthen regional health innovation.
The IDB president said, looking ahead, that the bank wants to do more to achieve its three core objectives of reducing poverty, tackling climate change, and boosting sustainable growth in the Caribbean and throughout Latin America.
“That’s why we’re carrying out the IDBImpact+ reforms, which will secure more resources to enhance the impact and scale of our work. They will help expand our lending capacity to US$19 billion by 2030, unlocking US50 billion over the next decade.”
Goldfajn said that to ensure these resources deliver meaningful change, the IDB is implementing a new impact framework anchored in a mission scorecard with clear, evidence-based metrics.
“We are also upgrading our financial tools, such as policy-based loans and investment lending, to help countries mobilize private resources and deliver high-impact projects.
“Enhanced regional programs, like ONE Caribbean, will address cross-border challenges with integrated, scalable solutions. Meanwhile, IDB Invest and IDB Lab reforms will mobilize private capital, foster entrepreneurship, and expand innovation to address development challenges.
“In total, we are bringing to our annual meetings in Santiago in Chile 11 reforms and initiatives as we prepare to increase the scale and impact of our work, making IDBimpact+ a reality.”
Goldfajn said Caribbean countries have done vital work to stabilize their economies and are now well-positioned to advance on critical issues such as sustainable growth, climate change, productivity growth, and citizen security.
“The IDB has been and will continue to be your partner in this endeavor. Through ONE Caribbean, we now also have a coordinated regional approach to address common challenges,” he added.
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