Barbados signs multi-billion dollar agreement with USExim Bank

Barbados has signed a US$500 million (One BDS$=US$0.50 cents) agreement with the Export-Import Bank of the United States (EXIM Bank), targeting critical sectors such as renewable energy, cybersecurity, water infrastructure, and maritime security.

EXIM is the official export credit agency of the US federal government and Prime Minister Mia Mottley and EXIM chairman and president, Reta Jo Lewis, signed the Memorandum of Understanding (MOU), which will remain in effect until 2026.
The agreement is set to expand American export opportunities while bolstering Barbados’ infrastructure and economic resilience.

“It is my pleasure to be able to sign this Memorandum of Understanding, which is a statement of general intent and sets forth no legal duties at this time, but sets the intention of both sides to be able to work together and to have access to a line of credit of US$500 million on across these four areas,” Mottley said, hailing the MOU as a testament to strengthening ties between the two countries.

“Nobody signs an MOU with a line of credit if they don’t have confidence in you,” she said,  linking the agreement to Barbados’ recent successes, including debt-for-nature and debt-for-climate swaps.
The partnership with EXIM Bank underscores Barbados’ push towards achieving carbon neutrality by 2030 and aligns with recent legislative strides like the Cybercrime Bill, aimed at fortifying digital security.
Lewis highlighted the broader implications of the agreement, tying it to the outgoing Biden-Harris administration’s strategy to deepen relations with the Caribbean.

“We see Barbados as a key country in the Caribbean where EXIM can help support impactful projects on the ground that impact lives and build economies. Whether it is supporting local business, importing US goods and services on a small scale, or large transformational infrastructure projects, EXIM, we believe, has the tools to support a wide variety of clients across Barbados,”  Lewis said.

She said the financial institution is ready to exceed the US$500 million allocation if necessary.
Prime Minister Mottley described the agreement as mutually advantageous, noting its significance in accelerating national development goals while creating opportunities for American businesses.
“This represents a win-win for both countries. The areas of emphasis—cybersecurity, renewable energy, water and sanitation, and maritime domain awareness—are all central to what Barbados must do in order to maintain a healthy investment climate for other foreign investment.”

She pointed to pressing concerns about water infrastructure, linking the need for investment to climate-related challenges and outdated systems.
“For every gallon of water you pump, at least half of it [is] going back into the earth. That cannot be when access to water is already a stressful concern for us,” Mottley said, adding that such partnerships are vital to addressing these gaps.

On renewable energy, Mottley remained optimistic about ongoing advancements in battery storage and the anticipated impact of legislative changes like the revised Electric Light and Power Act.

BRIDGETOWN, Barbados, Nov 26, CMC
CMC/sf/ir/2024

The post Barbados signs multi-billion dollar agreement with USExim Bank first appeared on CNC3.