CDB Invests in Study to Assess Demand for Regional Credit Enhancement Facility for MSMEs • The Barbados-based Caribbean Development Bank (CDB) is funding a feasibility study for the establishment of a Regional Credit Enhancement Facility (RCEF) for micro

• The Barbados-based Caribbean Development Bank (CDB) is funding a feasibility study for the establishment of a Regional Credit Enhancement Facility (RCEF) for micro, small and medium-sized enterprises (MSMEs).
• It said the US$160,000 study would explore viable solutions to the recurring challenges MSMEs face in accessing financing and potentially pave the way for enhanced financial support structures in the future.
• CDB's acting project director L O'Reilly Lewis said that: 'Even with extensive investments in loans and equity, many Caribbean MSMEs continue to face substantial funding gaps because of underdeveloped financial systems. This study will help us better understand the market needs and design a facility that could effectively address these gaps if the demand is validated'.
• According to the CDB, once the demand is validated, the RCEF is expected to offer MSMEs guarantees and other financial products and support services that enhance their bankability.
• 'It is envisioned that the facility will also support financial institutions in expanding credit access, provide training to enhance the capabilities of financial institutions, guarantee schemes and MSMEs, and streamline processes for all involved. Additionally, the solutions will focus on the inclusion of traditionally underserved groups such as women, youth, and those in the creative industries,' the bank said.
• Recognising that MSMEs are pivotal to the region's economy, the CBD has revised its approach to focus on enhancing financial accessibility and supporting sustainable business practices.
• 'We are constantly looking for ways to support these enterprises, which are the backbone of many Caribbean economies. The results of the study will lead to practical solutions that can help our MSMEs overcome finance-related obstacles and drive their growth,' said Lisa Harding, the CDB's acting head of the Private Sector Division.

(Source: Trinidad Express Newspaper)