CARICOM Development Fund with their Credit Risk Abatement Facility (CRAF)

The CARICOM Development Fund (CDF) is located in Barbados. The CDF has created a Credit Risk Abatement Facility (CRAF). This is an ecosystem (market mechanism) that aims to incentivize additional lending from local financing institutions, by providing credit risk abatement for renewable energy and energy efficiency interventions within the Caribbean Community. Special focus is placed on Small and Medium-sized Enterprises (SMEs). The Credit Risk Abatement Facility has a regional reach of twelve member countries in the Caribbean. Since its inception, CRAF has reached out to and facilitated discussions with several financial institutions within the region to partner with the facility. Of note, CRAF’s reach is extended to a broad group of financial institutions that include Development Banks, Commercial Banks, Energy Service Companies, Credit Unions and any registered fund providing lending to SMEs. To date, a master guarantee agreement was signed with the Saint Lucia Development Bank (SLDB), St. Lucia and the Development Finance Corporation (DFC), Belize.