Caribbean Development Bank (CDB) Overview 2025: History, Funding, and Impact with Latest Data

What Is the Caribbean Development Bank (CDB)?

The Caribbean Development Bank (CDB) is a pivotal multilateral financial institution focused on fostering sustainable economic growth and development within Caribbean nations and territories. Established to support long-term progress, the CDB finances vital projects and offers expert advice on economic policies to its member states.

Key Insights

• The CDB is dedicated to promoting sustainable economic growth and social development across the Caribbean region.
• It provides loans primarily to governments and public sector bodies, with private sector institutions in member countries also eligible for financing.
• About 55% of the bank’s shareholder equity is held by its borrowing members, ensuring regional ownership and influence.

Understanding the Role and Reach of CDB

Headquartered in Barbados, the Caribbean Development Bank serves 19 of the 20 CARICOM member states, delivering debt financing for impactful projects that drive social and economic advancement. In 2019, Jamaica, Barbados, Belize, and Antigua and Barbuda accounted for over half of the bank’s loan portfolio.

Fast Facts

In 2019, the CDB’s loan portfolio expanded by $85.8 million, reaching $1.25 billion, which increased its total assets to $2.1 billion.

Private sector entities, such as LIAT—the largest airline in the Caribbean—have also benefited from CDB financing, with LIAT securing a $65 million loan in 2013 to modernize its fleet.

Non-regional countries including Canada, the UK, and China hold the remaining equity. Jamaica and Trinidad and Tobago are the largest shareholders, each owning 17% of the bank.

Membership Structure

The CDB encompasses 28 member countries: 19 regional borrowing members, 4 regional non-borrowing members, and 5 non-regional non-borrowing members.

Historical Background of the Caribbean Development Bank

The concept of the CDB emerged in 1966 during a conference with Canada, leading to a 1967 report recommending the bank’s creation with an initial capital of $50 million. Supported by entities like the World Bank, Inter-American Development Bank, and UNDP, the CDB was officially established in October 1969 in Kingston, Jamaica, and commenced operations in January 1970.

Examples of CDB’s Impactful Projects

The CDB actively funds projects aimed at reducing inequality and halving extreme poverty in its borrowing member countries by 2025. Focus areas include food safety systems, agricultural enterprise programs, infrastructure development, education improvements, and support for small and micro-businesses.

Given the Caribbean’s vulnerability to natural disasters, many CDB initiatives prioritize climate change resilience and disaster prevention. For instance, in September 2019, the bank provided nearly $1 million in relief funds to the Bahamas following Hurricane Dorian, including a $200,000 grant for humanitarian aid and a $750,000 loan for recovery efforts.

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