September 1, 2009
by Taina RosaAs the financial crunch continues, the Caribbean has come to rely mostly on multilaterals such as the IDB and the World Bank for infrastructure financing. This is especially true for nations rated sub-investment grade, but the region generally is struggling to fund its key tourism sector through international banks.Unless youre dealing in investment grade countries, your sources of financing are multilaterals such as the International Finance Corporation and the IDB, says Scott Swensen, chairman of energy-focused private equity shop Conduit Capital. Multilaterals take more time, but terms are more favorable. They offer longer terms and cheaper rates,
As financing from commercial banks becomes increasingly expensive and hard to access, developers of Caribbean infrastructure turn to multilaterals.