Highlights of CDB’s Activities in 2012 and Economic Background and Prospects

[slideshow gallery_id=”2″]

In 2012, the operations of the Caribbean Development Bank (CDB) continued to be influenced by the lingering effects of the global financial crisis.  As a consequence of the difficult economic environment, reduced fiscal space for undertaking capital expenditure, and strict control over public sector spending across the Region, demand for CDB financing declined, once again.

Loan approval and disbursement performances in 2012 were lower than originally anticipated.   Loan approvals totalled USD104 million (mn), down from USD144 mn in 2011. Similarly, loan disbursements in 2012 totalled only USD85 mn compared with USD167 mn in 2011. CDB’s financing activities in 2012 supported a range of activities, including road rehabilitation and upgrade (Guyana and St. Vincent and the Grenadines); education sector reform to enhance human capital (Belize); student loans (Jamaica); water and sewerage (Belize and Dominica) and disaster rehabilitation and emergency relief (Bahamas, Dominica, Haiti and St Lucia). 

There were several noteworthy approvals in 2012.  First, the largest loan (USD34.2 mn) was made to Guyana for the West Coast Demerara Road Improvement Project.  Second, a technical assistance loan for USD3.6 mn was approved to assist the Government of Barbados improve the efficiency and effectiveness of revenue administration through the establishment of a Central Revenue Authority. Third, a USD5.2 mn loan and a USD105,000 grant  for Youth and Community Transformation in Belize marked the Bank’s first intervention in the area of citizen security.

The uncertain global environment, tentative economic growth across the Region, and declining creditworthiness of some of CDB’s Borrowing Member Countries (BMCs) were among major concerns raised by international credit rating agencies  and influenced the  credit downgrades received by CDB from both Moody’s Investors Service and Standard and Poor’s Ratings Services during the year…

Read full article here in PDF format  (417 KB)

View full PowerPoint presentation here (1.61 MB)