Promoting debt sustainability to facilitate financing sustainable development in selected Caribbean countries: A scenario analysis of the ECLAC debt for climate adaptation swap initiative

Abstract

In light of the high debt burden impacting Caribbean economies ECLAC has been pursuing an initiative designed to reduce the debt burden and advance sustainable development. The strategy has evolved over time and there is now agreement on an approach designed to bring financial resources to the Caribbean for resilience building while still emphasizing the importance of debt reduction. To address resilience and development financing, ECLAC proposes the establishment of a Caribbean Resilience Facility to be housed at a reputable financial institution. Such a facility would be capitalised by donors, including the GCF, wishing to assist in financing climate projects and other forms of resilience-building activities within the Caribbean.