US$383 million replenishment for CDB fund to reduce regional poverty, inequality

The Caribbean Development Bank’s (CDB) board of directors has endorsed a US$383 million programme for the 10th cycle of the bank’s Special Development Fund (SDF).

The programme is designed to reduce poverty and inequality, as well as transform the lives of citizens of borrowing member countries (BMCs).

The SDF represents the principal pool of concessional resources available to the bank to assist BMCs in addressing poverty, sustainable development, governance, capacity development, gender inequalities, environmental sustainability, climate change, disaster risk management, and regional cooperation and integration.

Established in 1970, the fund is a unique partnership among the bank’s stakeholders with both borrowing and non-borrowing members contributing to its resources.

With support from CDB and other development partners, BMCs have been making consistent efforts over the past two decades to reduce poverty and inequality. However, pressing development challenges persist and the ongoing COVID-19 pandemic has undermined some of the socio-economic gains achieved, the CDB said.

Member countries have pledged to contribute US$188.2 million to the SDF for the period 2020-2024, while the bank has allocated US$162.8 million from internal resources, such as loan repayments.

The top five contributors to SDF 10 are: Canada, the United Kingdom. Germany, Jamaica and Trinidad and Tobago .