Policy Based Loan - Barbados (2016)

The post-2008 global economic and financial crisis exacerbated Barbados’ fiscal position which was already tenuous. The economy contracted in 2008, 2009 and 2010 due to declines in the key economic sectors. The crisis also exacerbated the country’s fiscal deficit which had already started to increase since 2005 on the back of a rapid expansion in public expenditure. In 2009, the economic downturn further restricted revenue intake, but necessitated counter-cyclical spending, exacerbating the already weak fiscal position of Central Government (CG). CG’s debt-to Gross Domestic Product (GDP) ratio had been on a steady increase, especially since 2007 given the fiscal deterioration and an increase in contingent liabilities. Meanwhile, interest payments as a ratio of total revenues increased. Barbados’ foreign currency bond rating had been downgraded by two international rating agencies in June and November 2009.

Policy Based Loan - St. Kitts & Nevis (2016)

At the time of project appraisal, the level of public indebtedness in SKN was high by international standards and significantly above the prudential limit of 60% of GDP as suggested by the Monetary Council of the Eastern Caribbean Currency Union (ECCU). Similarly, debt servicing ranked highest among members of the ECCU and exceeded the GOSKN combined spending on health and education. The difficult debt situation posed a real threat to the success of the country’s fiscal adjustment programme in maintaining macroeconomic stability and growth prospects for St. Kitts and Nevis. The constraints on policy flexibility and the fiscal vulnerabilities stemmed from St. Kitts and Nevis’ susceptibility to external shocks and its high levels of public indebtedness.

Financial Sector Stabilisation Loan - St. Vincent & the Grenadines (2016)

In February 2010, GOSVG requested assistance from CDB for a loan in the amount of USD30-40 million (mn) to help stabilise the financial sector through the divestment of the publicly-owned commercial bank, National Commercial Bank (NCB). The St. Vincent and the Grenadines’ (SVG) financial sector is dominated by commercial banks which represent just under 70% of total financial sector assets (excluding National Insurance Scheme (NIS) assets). NCB, which is the target of this intervention, accounts for about 27% of financial sector assets and 40% of commercial bank assets.

Policy Based Loan - St. Vincent & the Grenadines (2016)

The Board of Directors of the CDB approved the financing of a Policy-Based Loan (PBL) valued at USD25 mn, to GOSVG on May 25, 2009. The Agreement became effective on August 24, 2009 and was to be completely disbursed by September 30, 2010.

Flood Mitigation Project - Saint Lucia (2016)

The island of St. Lucia is mountainous and vulnerable to landslides and flooding in coastal plains in locations such as Castries, Anse La Raye and Vieux Fort which lie below sea level. After widespread flooding in Saint Lucia from tropical storm Debbie, the Government of Saint Lucia (GOSL) undertook design work to improve the drainage systems in Castries, and Anse La Raye. In 2004, the Government requested assistance from CDB to finance a flood mitigation project. The Board of Directors (BOD) of CDB approved a loan of USD5,453,000 and a grant of USD20,000 for public education and awareness activities.

Technical and Vocational Education and Training 1990-2012

Technical and Vocational Education and Training (TVET) has received focused attention at a regional level through the Caribbean Community (CARICOM), anchored by the 1990 Regional Strategy for TVET. In 2013, the Regional Strategy was revised, and TVET was redefined and promoted as an agent of Workforce Development and Economic Competitiveness.The Caribbean Development Bank (CDB) supports interventions in education and training, particularly for unemployed youths and people at-risk, as critical to the achievement of national and regional social and economic development.The evaluation covers the period 1990-2012 and takes account of the results articulated in BMCs Human Resource and Education Strategies, Strategic Plans and Country Strategies; and projects/programmes; as well as current trends and good practices in TVET across projects in Barbados, Belize, Dominica, Guyana, Haiti, Jamaica, Saint Lucia, St. Vincent and the Grenadines, Trinidad and Tobago and the OECS.The objectives of the evaluation were to: (a) take stock of regional and international evidence of the effectiveness of TVET; (b) assess the performance of CDB interventions; (c) identify lessons of experience; and (d) provide strategic, policy, administrative and operational recommendations to inform future interventions. The report presents the key findings, issues and recommendations that emerge from the assessment of the TVET interventions financed by CDB.

Upgrading of EcoTourism Sites - Dominica (2015)

In 1993, the Caribbean Development Bank (CDB) provided technical assistance (TA) by way of a contingently recoverable loan to allow the Government of the Commonwealth of Dominica (GOCD) to engage consultants to visit, study and evaluate 12 ecotourism sites identified by GOCD and to make recommendations for improvements of access and facilities for the sites which had the most economic potential. This project was informed by the findings of that TA consultancy.

Social Investment Fund - Belize (2015)

Between 1995 and 2002, poverty levels in Belize, as indicated in the Country Poverty Assessments (CPAs), remained constant at about 33 per cent (%) of the population. However, the level of indigence had declined slightly by approximately 2.6%. The pattern and distribution of poverty had also changed, aggravated in part by the challenging global economic environment resulting in unemployment, low incomes of a large segment of the labour force categorized as the “working poor”, and the rising influx of refugee populations from Central America.

Tax Administration and Tax Reform 2005-2012

This evaluation of CDB’s Technical Assistance (TA) initiatives in tax administration and tax reform covers the period between 2005 and 2012 and focuses on six TA projects in four countries (Barbados, Belize, Grenada and Saint Lucia).The overall objective of the evaluation was to assess the development effectiveness of CDB’s TA interventions in the context of the Bank’s increased emphasis on promoting good governance.The specific objectives were to evaluate:(a) the extent that the Bank’s TA programme, in support of tax reform and tax administration, has been strategically relevant to the needs of the BMCs;(b) how effective was implementation of the TAs in achieving results and strengthening institutional capacity;(c) the efficiency of the use of inputs in achieving the objectives of the TA interventions;(d) the sustainability of project achievements over the longer term and alternative ways of achieving results.The evaluation also explores some important lessons learned for improving the effectiveness and efficiency of economic and administrative reform in the fiscal sector and develops general recommendations (15) to inform future TA interventions.

Policy Based Loan - Anguilla (2014)

The adverse effects of the global financial crisis in 2008 resulted in a sharp contraction of Anguilla’s Gross Domestic Product (GDP) and a significant deterioration in public finances. In view of the threat that was posed to Anguilla’s ability to meet its debt obligations, support its fiscal adjustment programme, shore up deteriorating public finances and stave off of a rapid build-up in short-term debt, the United Kingdom Government (UKG) approved Anguilla’s decision to approach the Caribbean Development Bank (CDB) to request a Policy-Based Loan (PBL) to support its fiscal adjustment programme and to restructure its debt portfolio.