DEFINITION of Caribbean Development Bank (CDB)
The Caribbean Development Bank (CDB) is a multilateral financial institution dedicated to assisting Caribbean nations and dependencies achieve sustainable long-term economic growth and development. In addition to financing programs that contribute to the social and economic development of the Caribbean region, the CDB provides its member states with advice and research on economic policies. Both the full and associate members of the Caribbean Community and Common Market (CARICOM) are able to receive financial support from the CDB.
BREAKING DOWN Caribbean Development Bank (CDB)
Headquartered in Barbados, the CDB was established in 1969. It currently serves and supports the 20 member states that make up CARICOM by providing their governments as well as their public sector entities with debt financing for projects. More than 63% of the bank's total loan portfolio is accounted for by Jamaica, Barbados, St. Vincent and the Grenadines, St. Lucia, and Belize. Private sector institutions based in member states are also able to apply for financing from the bank. For example, in 2013 LIAT, the Caribbean's largest airline company, borrowed $65 million from the CDB in order to upgrade its fleet.
Approximately 55% of the bank's shareholder equity is owned by its borrowing members, while the remaining equity is owned by nonregional countries such as Canada, the U.K. and China. The CDB's two largest shareholders are Jamaica and the Republic of Trinidad and Tobago, which each own 19% of the entity.
Caribbean Development Bank Projects
The Caribbean Development Bank funds a number of different projects. One of the most recent is the Rehabilitation and Reconstruction Project, which involves assisting the British Virgin Islands in recovering from Hurricane Irma in August/September 2017. This project was funded through a loan of $65.3 million and a grant of $300,000.