BRIDGETOWN, Barbados, June 24, 2026 – Caribbean leaders, multilateral development banks, credit rating agencies, and development finance experts have called for accelerated action to expand financing solutions that can help countries reduce debt burdens, create fiscal space, and strengthen resilience to future shocks.
The call came during the seminar, “Innovative Debt Solutions: Financing a More Resilient Caribbean,” hosted by the Caribbean Development Bank (CDB/the Bank) as part of the 56th Annual Meeting of the Bank’s Board of Governors in Nassau, The Bahamas.
The high-level discussion explored how debt-for-resilience swaps and coordinated multilateral guarantee structures can help Caribbean countries address high debt burdens while investing in climate adaptation, social protection, and sustainable development.
Moderated by CDB Chief Risk Officer Stefano Capodagli, the seminar brought together representatives from the Government of Barbados, the World Bank, the Inter-American Development Bank (IDB), the Development Bank of Latin America and the Caribbean (CAF), Fitch Ratings, and CDB to examine practical pathways for scaling innovative financing solutions across the Region.
Opening the discussion, Capodagli underscored the urgency of the challenge facing Caribbean economies.
“The Caribbean is at a critical juncture. High debt levels and limited fiscal space are constraining countries’ ability to invest in resilience and development,” he said. “New solutions are needed, and we must move quickly to put them into action.”
Participants highlighted growing momentum behind debt-for-resilience mechanisms that lower debt-servicing costs while directing savings towards investments that strengthen countries’ capacity to withstand future shocks. Particular attention was given to the Regional Multi-Guarantee Debt-for-Resilience (MGDR) initiative, a collaborative effort involving CDB, IDB, CAF, and the World Bank to improve borrowing terms and channel fiscal savings into resilience-building investments.
Reflecting on Barbados’ leadership in advancing climate and debt finance reform, the Honourable Ryan Straughn, Barbados’ Minister of Finance, pointed to the progress achieved through the Bridgetown Initiative.
“The Bridgetown Initiative was born from the belief that the financial system can work better for vulnerable countries,” he said. “Today, debt-for-resilience swaps are proving that vision can deliver tangible benefits for people, communities, and future generations.”
Speakers agreed that no single institution can address the Region’s financing challenges alone. Success will depend on stronger partnerships and coordinated action among governments, multilateral development banks, investors, and development partners.
Lilia Burunciuc, World Bank Director for the Caribbean, underscored the importance of collaboration among multilateral development banks and development partners, noting that innovative debt instruments must be supported by strong partnerships and coordinated action among development institutions.
“The Caribbean is demonstrating that when development partners act as one system, we can achieve outcomes that none of us could deliver alone. Collaboration is no longer optional – it is how transformation happens,” she said.
CAF Vice President and Chief Financial Officer Gabriel Felpeto noted that resilience financing must become a proactive rather than reactive endeavour: “We must move from financing recovery after shocks to financing resilience before they occur,” he said. “Innovative debt solutions give countries the tools to invest ahead of risk and build a stronger future.”
CDB Lead Economist Jason Cotton underscored the multipurpose role of debt swap: “We see debt swap transactions as a capital efficient risk sharing and a catalytic financial tool helping to achieve three objectives: to scale up financing, manage capital constraints and preserve credit strength.”
The discussion also explored how rating agencies assess debt conversion transactions and their implications for sovereign creditworthiness.
Joshua Grundleger, Director, Sovereigns, Americas Group, at Fitch Ratings, noted that these arrangements can support stronger credit profiles when implemented as part of broader economic reform efforts.
The seminar concluded with broad agreement that innovative debt solutions are becoming an increasingly important part of the Caribbean’s development finance toolkit. Participants called for greater regional scale, stronger institutional capacity, and continued collaboration to ensure countries can access the financing needed to build resilience and advance sustainable development.
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