BRIDGETOWN, Barbados (CMC) — The Barbados-based Caribbean Development Bank (CDB) Wednesday said it had entered into a “strategic partnership” with the Inter-American Development Bank (IDB Invest) to support private sector development in the region.

It said that this renewed collaboration focuses on expanding financing for trade and unlocking new opportunities for businesses across the Caribbean, placing private sector-led growth at the forefront of a common agenda.

“The partnership reflects a shared vision to empower the Caribbean’s private sector as a driver of economic development. By working with financial institutions across the region, the collaboration aims to improve access to finance for small and medium-sized enterprises (SMEs), expanding their opportunities for trade, investment and long-term development,” the CDB added.

It said a key highlight of the enhanced partnership is CDB’s new Trade Finance Guarantee Programme, a significant milestone in regional financial innovation. As part of the pilot phase, CDB will enter into a Risk Participation Agreement (RPA) with IDB Invest. RPAs enable the sharing of risk associated with loans and other obligations across institutions.

“This partnership and the Trade Finance Guarantee Programme will enhance access to trade investment across the bank’s member countries, crowd in private sector resources, foster economic growth and deepen regional integration,” said Lisa Harding, division chief, private sector at the CDB.

The CDB said that trade finance plays a critical role in facilitating both global and regional commerce. In the Caribbean, limited access to timely trade finance remains a significant barrier for businesses, particularly SMEs. Trade funding helps reduce financing gaps between trading partners and supports participation in regional and global markets.

“Beyond trade finance, the two institutions are laying the groundwork for joint originations and co-financing of private sector projects across the Caribbean. This will impact the reach of both institutions while fostering a more dynamic and resilient business environment.

“CDB and IDB Invest will also collaborate on capacity-building initiatives to strengthen the bank’s broader private sector operations throughout the Caribbean. These efforts will deepen institutional readiness, further accelerate innovation and lead to the development of new financial instruments tailored to the region’s evolving needs,” the region’s premier financial institution added.