The Caribbean Development Bank (CDB) has thanked the Government of Canada for a Portfolio Guarantee of up to US$200 million for CDB.

Responding to Canadian Prime Minister Mark Carney’s announcement at the 2025 G7 Leaders’ Summit, the CDB described the announcement as “game-changing”.

“This announcement by Canada marks a transformative milestone in expanding development financing for the Caribbean. The initiative bolsters CDB’s capacity to deliver essential support to its borrowing member countries while reinforcing the bank’s financial resilience and enhancing its capital optimisation,” the CDB remarked.

The Portfolio Guarantee will play a catalytic role in optimising CDB’s balance sheet. With the guarantee, the CDB can free up substantial risk capital and increase lending headroom to advance development solutions across the region.

Support for Latin America, Caribbean

In a release, Canada’s Office of the Prime Minister outlined that Carney, while at the G7 Summit in Kananaskis, Alberta, committed CA$544 million (US$400 million) in guarantees for new development financing in Latin America and the Caribbean. The Inter-American Development Bank and the Caribbean Development Bank are the beneficiaries.

The announcement is part of Canada’s broader G7 initiative to drive innovative financing at multilateral development banks. This funding is anticipated to unlock up to US$1.6 billion in new development financing to address challenges across Latin America and the Caribbean.

CDB President Daniel Best has expressed his gratitude for Canada’s commitment.

“Canada’s support is a game-changer for the bank and the region. The Portfolio Guarantee reflects the transformative potential of partnerships and financial innovation to drive meaningful development outcomes. This initiative will expand our lending capacity to address the critical needs of our Borrowing Member Countries while reinforcing the Bank’s financial strength and reputation. We are incredibly grateful to Canada for their leadership and confidence in CDB, and we look forward to delivering on the promise of this partnership for the people of the Caribbean,” Best stated.

Canada’s leadership and partnership

This initiative aligns with CDB’s Balance Sheet Optimisation (BSO) programme, which seeks to adopt innovative financial instruments inspired by other multilateral development banks to protect credit ratings and increase development lending. Supported by Canada’s leadership and funding, this initiative also complements CDB’s efforts to leverage innovative mechanisms such as Portfolio Guarantees and Exposure Exchange Agreements for greater financial impact.

CDB also commends Canada’s strategic leadership as G7 President, prioritising impactful development solutions for emerging markets and fostering global partnerships in support of sustainable development. This commitment underscores Canada’s dedication to advancing the economic resilience of small island developing states and their communities.

The Bank remains confident in the tangible benefits this partnership will deliver—empowering the region to address pressing environmental, social, and economic needs while ensuring long-term financial sustainability.