ESG & Investing

IMF, Barbados Reach Deal for First-Ever Loan Under Climate Trust

  • Money will be used to bolster nation’s environmental defenses
  • Caribbean island is perennial victim of hurricanes, flooding

The International Monetary Fund headquarters in Washington, DC.

Photographer: Samuel Corum/Bloomberg
Lock
This article is for subscribers only.

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

The staff-level deal, which still needs to be approved by the crisis lender’s board, includes $183 million under the new Resilience and Sustainability Trust, or RST, the IMF said in a statement on Wednesday. It also incorporates $110 million in a traditional three-year extended fund facility.