CARIBBEAN-FINANCE-IMF says CDB's 'recovery duration adjuster' 'merits analysis'.

MARRAKECH -- The International Monetary Fund (IMF) Friday described as 'appealing' the proposal by the Barbados-based Caribbean Development Bank that the recovery duration adjuster (RDA) be used to determine access to concessional finance.

The CDB said that RDA better reflects the economic, social, and environmental conditions of small island developing states and is therefore an appropriate metric.

Rodrigo Valdes (CMC Photo)

'This idea of the Caribbean Development Bank is appealing and therefore merits analysis,' IMF Western Hemisphere Director, Rodrigo Valdes told the Caribbean Media Corporation (CMC).

'We don't have yet enough details to have a view on this. At the same time, we have to be careful in terms of the resources for concessional access,' said Valdes, who is attending the annual meetings of the IMF and the World Bank Group, which ends here on Saturday.

'Now this competes with other needs at the same time, but overall, the view that only income level defines vulnerability, I think, is a very appealing concept in general. We'll see whether it can be operationalised in a conducive way,' Valdes added.

Valdes, spoke also at a news conference where the IMF released its October 2023 Outlook for the Western Hemisphere, titled 'Securing Low Inflation and Nurturing Potential Growth'.

The report noted that geopolitical tensions would also impair global cooperation on common challenges, including climate change.

'Tackling climate challenges is a balancing act of weighing the costs versus the benefits of climate policy.

Nigel Chalk

'For example, countries in the region that rely heavily on fossil fuel revenues could face a tradeoff between scaling down investment in fossil fuels to contain transition risks (for example, stranded assets) and continuing to invest in fossil fuels to secure higher revenues.'

Speaking at the same press conference, IMF Western Hemisphere Deputy Director, Nigel Chalk, said it is important that the Caribbean look at building its resilience to climate change.

'And that's multifaceted,' Chalk said, adding that this means shifting towards renewable energy sources.

'Part of it is to strengthen its infrastructure to be much more resilient to the increased frequency and intensity of storms and hurricanes the region is facing.'

Chalk mentioned the IMF's resilience and sustainability fund programmes with both Barbados and Jamaica, 'where we're pursuing a lot of these reforms.

'We're providing capacity development to the...