BRIDGETOWN, Barbados, Oct 30, CMC – The Barbados-based Caribbean Development Bank (CDB) Friday said it had approved a US$10 million policy-based loan to Dominica to support reforms aimed at strengthening public financial management, improving debt sustainability, enhancing financial sector stability and advancing climate resilience.
The CDB said that the proposed financing represents the second and final loan under a US$30 million programme designed to support Dominica’s medium-term reform agenda. The first loan of US$20 million was disbursed in April 2025, helping to establish the institutional and policy foundations for the programme’s continued implementation.
“Strengthening economic resilience requires sound public finances, robust institutions and sustained investment in climate resilience,” said Ian Durant, Director, Economics Department, CDB.
“For Dominica, these priorities are closely interconnected. The reforms supported through this programme are intended to improve the management of public resources, strengthen financial sector stability and help the country better prepare for and respond to climate-related shocks.”
The CDB said the programme supports reforms across two interconnected areas: strengthening fiscal and debt management and financial sector stability; and enhancing climate resilience and sustainable development. Together, these measures aim to improve Dominica’s capacity to manage economic shocks while creating a stronger foundation for sustainable, inclusive growth.
It said key reforms include measures to improve revenue collection through digital tax administration, strengthen debt management through the publication of a Medium-Term Debt Strategy, and increase transparency and value for money in public spending through updated procurement procedures and standardised bidding documents.
The programme also supports measures to strengthen the financial sector, including modernising the legal framework for electronic payments and advancing regulatory requirements for the Dominica Agricultural and Industrial Development Bank. These reforms are intended to reduce financial system vulnerabilities and support a more stable environment for economic activity.
The CDB said that climate resilience is another central focus, with support for stronger disaster-response arrangements, improved climate governance and measures to protect Dominica’s natural assets.
It said these efforts are particularly important for an island highly exposed to hurricanes, flooding, landslides and other natural hazards that can reverse development gains and place significant pressure on public finances.
“The programme also supports the protection of marine ecosystems and the development of sustainable economic opportunities linked to nature-based tourism and the blue economy. These measures complement Dominica’s broader ambition to diversify its economy and strengthen its long-term development prospects.”
The CDB said that the second loan builds on the government’s progress under the first phase of the programme and reflects continued collaboration between CDB and the World Bank in supporting Dominica’s reform priorities.
“Through this operation, CDB continues its partnership with the Government of Dominica to advance stronger institutions, sound economic management and climate resilience as essential foundations for sustainable development across the Caribbean,” it added.
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