Carribean Nation Secures First-Ever Loan Under Climate Trust

The International Monetary Fund and the tiny Carribean nation of Barbados agreed to almost $300 million in loans, including the first credit of its kind under a new tool to help nations bolster their defenses against climate change.

The deal includes $183 million under the new Resilience and Sustainability Trust. It also incorporates $110 million in a traditional three-year extended fund facility.

The combined RST and EFF program aims to strike a balance between enhancing resilience to climate change while also focusing on Barbados’ continued efforts to reduce public debt and facilitate capital expenditure to boost growth,

said Bert van Selm, who led an IMF team on a visit to Barbados.

Under the terms of the deal, Barbados will need to adopt measures to incentivize private-sector investments in climate resilient infrastructure and into renewable energy projects.