Caribbean Development Bank, European
Investment Bank, FMO, IFC and PROPARCO to increase coordination and support
of sustainable solutions for the region’s financial, tourism and infrastructure
Today, five leading international financial
institutions active in the Caribbean reinforced their commitment to ensuring
long-term economic growth across the region, resilience to the global financial
crisis and effective deployment of assistance for reconstruction efforts
in Haiti with agreement of the Caribbean Joint Action Plan. Institutions
participating in the landmark agreement were the Caribbean Development
Bank (USD 300m), the European Investment Bank (USD100m), the Netherlands
Development Finance Company FMO (USD 100m), the International Finance Corporation
- part of the World Bank Group (USD 150m), and PROPARCO - the private sector
arm of the Agence Française de Développement Group (USD 200m). The signature
ceremony took place on the sidelines of the Caribbean Development Bank’s
annual meeting currently underway in Nassau, Bahamas.
The Caribbean Joint Action Plan will
enable more effective use of financial and technical assistance by encouraging
a stronger focus on each participating institution’s experience and capabilities.
Joint investment under the plan will concentrate on crucial economic sectors
most impacted by the economic slowdown: finance, tourism and infrastructure.
It is expected that this approach will further support economic growth
in the region by mobilizing IFI investment to act as a catalyst for private
sector engagement and facilitating national and sub-regional support and
policy dialogue amongst both private and public stakeholders.
The Caribbean Joint Action Plan demonstrates
the collective support of the five signatory institutions to supporting
Haiti following the recent devastating earthquake. This includes
technical assistance and reinforced coordinated financial engagement that
focuses on rebuilding the private sector and strengthening its role in
Haiti’s economic development.
Mr. P. Desmond Brunton, Vice-President
(Operations) of the Caribbean Development Bank indicated that “This joint
approach to helping the Caribbean Countries address their challenges is
critical to the effective use of development assistance, especially in
this period of uncertainty.”
“The European Investment Bank welcomes
this landmark initiative to work more closely with our partner institutions
to support long-term economic growth across the Caribbean, make best use
of our respective experience and facilitate recovery in Haiti”, said Plutarchos
Sakellaris, European Investment Bank Vice President responsible for the
“FMO strongly supports this action plan
since it unites two of our core objectives: providing support for a region
that lacks commercial finance to spur growth and cooperating with well
respected partner institutions. Especially in these times providing access
to finance is imperative to current and future generations of Haïti and
other Caribbean nations”, said Jurgen Rigterink, Chief Investment Officer
“The International Finance Corporation,
the largest multilateral for the private sector, joins this initiative
that will help coordinate efforts and create synergies among development
institutions. It will expand our ability to accomplish greater development
impact in the Caribbean, with special focus on infrastructure, the financial
sector, and job-creating industries such as tourism”, said Jyrki Koskelo,
IFC Vice President for Global Industries".
“The Caribbean region lacks long term
funding from commercial sources, and deserves a well coordinated and strong
response and support from the DFI community. This important initiative
is for us a great way to catalyze efforts. Within our community, Proparco’s
objective is to scale up significantly its operations in the region, both
in the infrastructure and in the financial sector” said Laurent Demey,
Proparco’s Deputy CEO.
Each institution will finance their own
projects within the sector scope with co-financing opportunities being
examined in a case-by-case basis. Specific efforts will also be taken to
foster public-private sector policy dialogue in the region, supporting
governments’ macroeconomic and structural reform and in coordination with
IMF, World Bank and Caribbean Development Bank programmes.
The institutions involved expect to commit
up to USD 850 million in financial resources over a 2- 3 year period starting
in 2010. Recognizing overlapping mandates in the Caribbean region, activity
by individual institutions will follow existing geographical remits.
Sharon Marshall, Ph.D. Tel: +1 2464311882 Email: email@example.com
Investment Bank: Richard Willis, Tel: +352 621 555758, Email: firstname.lastname@example.org
Nicoline van Slingelandt Tel: +31 70314 9790, Email: N.van.Slingelandt@fmo.nl
Adriana Gomez, Tel: +1 202 4585204, Email: email@example.com
Benoît Verdeaux, Tel: +33 153443750, Email: firstname.lastname@example.org
Notes to the editor:CDB
The Caribbean Development Bank (CDB)
has been financing social and economic development in the Caribbean for
the past four decades, with cumulative approvals amounting to USD3.5 billion.
With the goal of systematically reducing poverty in the Caribbean, CDB
seeks to be a catalyst for development resources into the region.
European Investment Bank
For more than three decades, European
Investment Bank, the European Union’s financing institution has supported
economic development of the Caribbean region with loans and equity investment
worth over EUR 1.3 billion. EIB lending in the Caribbean for the period
2004-2009 represented EUR 318 m, including overseas territories. Infrastructure
projects include water, energy, telecommunications and transports sectors,
financial services and support for small and medium-sized enterprises,
including microfinance, and industry. The Bank’s Caribbean presence was
reinforced in May 2007 by a Regional Office in Martinique.
The Netherlands Development Finance Company
(FMO) is the international development bank of the Netherlands. FMO invests
risk capital in companies and financial institutions in developing countries.
With an investment portfolio of € 4.6 billion, FMO is one of the largest
bilateral private sector development banks worldwide. Thanks in part to
its relationship with the Dutch government, FMO is able to take risks which
commercial financiers are not - or not yet - prepared to take. FMO's mission:
to create flourishing enterprises, which can serve as engines of sustainable
growth in their countries.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing capital for private enterprise,
and providing advisory and risk mitigation services to businesses and governments.
Our new investments totalled $14.5 billion in fiscal 2009, helping channel
capital into developing countries during the financial crisis. In the past
years, IFC has ramped up its investment and advisory operations in the
Caribbean, with the support of donors and consistent with the governments'
priorities. In two years, IFC has more than doubled the number of projects
in this region, from 6 in FY07, to 15 projects in FY09, including investments
and advisory services. To help address the challenges in the region and
consistent with IFC's role and expertise, IFC has identified three key
areas that are now at the center of its strategy in the Caribbean: infrastructure
development, the financial sector and tourism.
PROPARCO is a Development Financial Institution
partly held by Agence Française de Développement (AFD) and private shareholders
from the North and South. PROPARCO’s mission is to be a catalyst for private
investment in developing countries which targets growth, sustainable development
and reaching the Millennium Development Goals (MDGs). PROPARCO finances
operations which are economically viable, socially equitable, environmentally
sustainable and financially profitable. Its sectoral strategy is tailored
to the level of a country’s development and focuses on the productive
sector, financial systems, infrastructure and equity investment. PROPARCO
invests in a geographical area ranging from major emerging countries to
the poorest countries, in particular in Africa, and has high-level requirements
in terms of Social and Environmental Responsibility. PROPARCO has a wide
range of financial instruments to meet the specific needs of private investors
in developing countries (loans, equity, guarantees and financial engineering).
PROPARCO has a team of 130 people, eleven regional offices and is supported
by 50 AFD Group agencies worldwide. In 2009 PROPARCO granted €1, 1 billion
for over eighty projects in more than thirty countries.