Regional countries to benefit from new IDB proposal

Caribbean countries could benefit from the largest liability management operation proposed by the Inter American Development Bank (IDB).



In a statement today, the bank said as a result, 41 borrowing shareholders and government guaranteed institutions have agreed to attach new interest rates to US$26 billion of outstanding debt or convert it to local currency.



According to the Chief Financial Officer Edward Bartholomew, the conversion offer will provide greater access to market.



He said it would also provide standard financial instruments to the borrowers so that they may better manage interest rate and foreign exchange risks associated with their IBD debt.