Approval of Ordinary Capital
May 18, 2010 No. 21/10-BG CDB Board of Governors Approves 150% Expansion of Capital NASSAU, Bahamas - The Board of Governors of the Caribbean Development Bank (CDB) has approved an increase in the Bank's ordinary capital by USD1 billion, the largest expansion of resources in the Bank's history. The capital increase will include a 22% paid-up component equivalent to approximately USD216 million to be paid over the next six years. This injection of new funds will enable the Bank to increase its financial assistance to its Borrowing Member Countries (BMCs) to deal with the impact of the global financial and economic crisis as well as to execute their medium-term programmes for poverty reduction and economic and social development. It will also ensure that the Bank is adequately resourced to implement the programmes of assistance envisaged in the recently approved Strategic Plan 2010-2014 and beyond. Management of the Bank is pleased with the overwhelming demonstration of shareholder support expressed by this capital increase, and for the opportunity it affords for CDB's continued contribution to the development of the Region. "As we all know, countries in Europe, North America and the Caribbean are experiencing economic difficulties", CDB President, Dr. Compton Bourne, remarked, "so the decision to commit is not a decision that could have been made easily by the various countries. But the fact that it was made even in the difficult fiscal circumstances, including by countries that are experiencing acute problems, shows their recognition of the importance of a greatly enhanced financial allocation to economic recovery and social and economic development."