Senator Dwayne George says debt-for-climate and debt-for-development swaps could give Antigua and Barbuda the fiscal space needed to strengthen its infrastructure and climate resilience. Speaking on _Government in Motion_ on ABS, he explained that the initiatives discussed during recent IMF and World Bank meetings would allow small states to redirect funds toward national priorities instead of traditional debt payments.
George said the concept involves international partners purchasing a country’s domestic debt at a reduced rate. “An entity buys that debt at a discount,” he said, outlining how the process eases immediate financial pressure. “So instead of paying that money to service your debt, that money goes into development.”
He said the mechanism is designed for countries facing repeated climate-related shocks, allowing them to steer resources toward resilience. “It helps us with climate-resilient projects,” George said, adding that small island states need tools that recognise their unique vulnerabilities.
According to George, these swaps offer a pathway for Antigua and Barbuda to fund critical improvements without expanding its fiscal burden. By converting debt obligations into development investments, he said, the country can better respond to the disruptions that often set small economies back.
“It gives small states like ours room to breathe,” he said.
