Caribbean economies continue to navigate high public debt, constrained fiscal space, and heightened vulnerability to climate shocks and global economic volatility. Structural factors, including narrow economic bases, heavy import dependence, and frequent exposure to natural hazards, have left many countries with limited room to respond to crises just as investment needs in resilience, health, and social protection continue to grow. Elevated debt service obligations crowd out critical development spending, reinforcing cycles of weak growth and fiscal fragility across the Region. 

This seminar explores how innovative debt solutions can help Caribbean Small Island Developing States (SIDS) unlock fiscal space while strengthening long‑term resilience. Moving beyond traditional debt management, the session examines the role of debt swaps, debt conversions, and refinancing mechanisms, particularly those supported by Multilateral Development Bank (MDB) guarantees, in improving the cost, maturity, and risk profile of sovereign debt. These approaches link debt relief directly to measurable development outcomes, ensuring that fiscal savings are reinvested in priority areas such as climate resilience, health systems, and social protection. 

A central focus of the discussion is the Regional Multi‑Guarantee Debt‑for‑Resilience (MGDR) initiative, a coordinated effort involving the Caribbean Development Bank (CDB), the Inter‑American Development Bank (IDB), CAF – Development Bank of Latin America and the Caribbean, and the World Bank. By pooling guarantees across MDBs, the MGDR mechanism enhances credit quality and investor confidence, enabling countries to refinance debt on more favourable terms while ring‑fencing savings for resilience‑building investments. 

The seminar will bring together MDBs, policymakers, credit rating agencies, and investors to raise awareness of multi‑guarantor debt‑for‑resilience swaps as a scalable and transformative financing solution for the Caribbean. Through dialogue and knowledge exchange, the session aims to promote regional replication, strengthen debt sustainability, and support a more resilient and sustainable development trajectory for the Caribbean.