IDB, CAF and CBD launch Caribbean Resilience Debt Swap Initiative

The Inter-American Development Bank (IDB), CAF - Development Bank of Latin America and the Caribbean, and the Caribbean Development Bank (CDB) launched today at COP30 the Joint Caribbean Multi-Guarantor Debt-for-Resilience Swap Initiative, a landmark regional effort designed to boost disaster preparedness while alleviating debt pressures in the Caribbean.

By leveraging guarantees from multilateral development banks (MDBs) and private sector actors, the initiative will create fiscal space for countries to invest in priority resilience measures and regional public goods, enabling action before disasters occur and without adding new debt.

The Joint Initiative will focus on three objectives:

1. Scale up debt-for-resilience swaps to generate fiscal space and strengthen resilience.
2. Improve coordination between MDBs, governments and private sector partners to scale up and streamline interventions, especially debt-for-resilience swaps in the region.
3. Raise standards of transparency, monitoring and evaluation to attract more investment.

The initiative foresees the creation of a mechanism under a Framework Agreement to facilitate coordination among guarantors for debt-for-resilience swap transactions, respecting each institution's mandates, internal approvals and formal processes. Transactions will be tailored to align with national sovereign debt management and development strategies, in accordance with each guarantor's policies.

The institutions will work together to establish common principles on guarantee terms, define shared taxonomies and key performance indicators (KPIs) for resilience investments, aligned with global benchmarks. This initiative is expected to streamline debt swaps with multiple guarantors, attract new and non-traditional guarantors, enable larger transactions, reduce costs and speed execution, and improve access to investors through robust reporting and monitoring frameworks. Each transaction should include a regional public goods component, strengthening collective resilience in the Caribbean.

About CAF - Development Bank of Latin America and the Caribbean
We are a development bank committed to supporting the countries of Latin America and the Caribbean and improving the quality of life in the region. Our actions promote sustainable development and regional integration. We serve the public and private sectors, offering multiple products and services to a broad base of clients in 24 member countries, private companies and financial institutions. More information at caf.com

About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is dedicated to improving lives in Latin America and the Caribbean. Founded in 1959, it works with the region's public sector to design and enable innovative and impactful solutions for sustainable and inclusive development. Leveraging funding, technical expertise and knowledge, it promotes growth and well-being in 26 countries. Visit our website: www.iadb.org

About the Caribbean Development Bank
The Caribbean Development Bank is a regional financial institution established in 1970 to contribute to the harmonious economic growth and development of its Borrowing Member Countries (BMCs). In addition to the 19 BMPs, the CDB's membership includes four regional non-borrowing members: Brazil, Colombia, Mexico and Venezuela, and five non-regional non-borrowing members: Canada, China, Germany, Italy and the United Kingdom. The Bank's total assets in Ordinary Capital Resources amounted to US$2.02 billion as of December 31, 2024, while it also manages US$1.40 billion in Special Fund Resources. The Bank is rated Aa1 Stable by Moody's, AA+ Stable by Standard & Poor's and AA+ Stable by Fitch Ratings. More information at www.caribank.org