PM Browne Proposes Using ECCB Reserves to Help Finance Regional Development

Prime Minister Gaston Browne has proposed that the Eastern Caribbean Central Bank (ECCB) use a small portion of its foreign reserves to help finance strategic development projects across the Eastern Caribbean Currency Union, arguing that the move could strengthen regional economies without compromising the stability of the EC dollar.

Addressing the 113th Meeting of the ECCB Monetary Council in Dominica on Thursday, Browne suggested that between five and eight percent of the Bank’s reserves could be deployed through innovative financing instruments to support investments in renewable energy and other critical sectors.

“The Bank must… assist in catalyzing funding for the Big Push to strengthen regional economies, by developing creative and innovative credit and securities instruments, utilizing a small portion (possibly 5-8 percent) of its reserves,” Browne said.

He argued that stronger OECS economies with less dependence on foreign direct investment and imports would ultimately reinforce the Central Bank’s foreign reserve position.

According to Browne, the ECCB could support long-term economic sustainability by demonstrating greater confidence in member states and providing catalytic financing for projects that improve energy resilience and economic productivity, while maintaining the required backing ratio for the EC dollar. He said the proposal would be discussed by Monetary Council members as a strategic priority during the meeting.

The Prime Minister linked the proposal to the ECCB’s “Big Push” initiative, which aims to double the size of the Eastern Caribbean economy and expand regional gross domestic product to about EC$50 billion over the next seven years. He described the initiative as a wealth-creation strategy designed to increase entrepreneurship, investment, ownership and employment opportunities across the Currency Union.

Browne also highlighted progress in financing renewable energy projects through the Resilient Renewable Energy Infrastructure Investment Facility, noting that approximately US$200 million has already been secured from development partners. He said he expects the Central Bank to contribute additional financing that would increase the facility to US$300 million.

He said expanding renewable energy infrastructure would reduce the region’s dependence on imported petroleum products, lower foreign exchange outflows and improve long-term energy security. Browne also revealed ongoing discussions with the European Union on developing geothermal energy projects and a shared subsea telecommunications network to provide more affordable broadband services throughout the OECS.

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