Antigua and Barbuda’s House of Representatives Approves Agreement to Join the Development Bank of Latin America and the Caribbean
Antigua and Barbuda’s Parliament has approved the country’s membership in the Development Bank of Latin America and the Caribbean (CAF), paving the way for increased access to development financing. The agreement, which includes a US$15 million share subscription, was passed with bipartisan support.
Prime Minister Gaston Browne, in presenting the bill, emphasized that joining CAF aligns with the government’s strategy to reduce borrowing costs and restructure high-interest debt. He highlighted that while the country’s debt-to-GDP ratio has fallen from 100% in 2021 to about 62%, debt servicing remains a significant financial burden.
“We hope to issue a few hundred million US dollars in debt instruments—a combination of bonds and loans—to secure cheaper financing and drive down borrowing costs,” Browne said. He added that Antigua and Barbuda plans to utilize US$60 million in financing from CAF as part of a broader debt management strategy.
The agreement also allows local businesses to access financing from CAF, particularly for large-scale projects beyond the capacity of domestic banks.
Opposition MP Richard Lewis supported the initiative, acknowledging its potential benefits in providing development funds, improving Antigua and Barbuda’s financial credibility, and fostering regional integration. However, he cautioned that funds secured through CAF should be used responsibly for national development.
One point of contention was a clause granting CAF employees exemptions from local taxes, including the Antigua and Barbuda Sales Tax (ABST). Browne proposed an amendment to ensure CAF staff would still be liable for consumption taxes on locally purchased goods and services.
With the agreement ratified, Antigua and Barbuda now joins CAF as a shareholder member, enabling both the government and private sector to tap into new financing opportunities for infrastructure, social development, and economic initiatives.
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