CARIBBEAN DEVT BANK

closed

In line with CDB's lending policy, the proposed Bank loan and the credits will be relent by the CDB in sectors which will make a maximum contribution to the economic development of the region and for public and private sector projects of the types which the Bank itself normally finances. Lending through the CDB will enable the Bank and IDA to support small projects in the Commonwealth Caribbean which otherwise would be too costly and cumbersome to administer. Risks that might affect the success of the project are: the weak economic basis of the region, uncertain prospects for prices of the commodities exported by the region and the continuous rapid increase of the cost of energy. It seems, however, from CDB's project pipeline that high levels of lending will be achieved in the next two to three years. In addition, it is expected that substantial amounts of external financing for local costs of projects and technical assistance will continue to be provided to the region through the Caribbean Group for Cooperation in Economic Development.