The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a $15 million global credit program to expand access to financing for micro, small, and medium-sized enterprises (MSMEs) in Belize, according to a press release issued on November 09, 2026. The initiative will support the establishment of Belize’s first guarantee fund for MSMEs, mobilizing medium- and long-term financing from local financial institutions. It aims to enable longer tenors aligned with businesses’ growth needs. The program was announced from Washington. Together, these measures seek to unlock productive investments across the country.
MSMEs form the backbone of Belize’s economy, accounting for 90% of businesses nationwide. They also generate 50% of private-sector employment and income. Despite this weight, only 18% of them have a loan or line of credit from a financial institution. This gap highlights long-standing constraints in the local credit market. The new program is designed to address these structural limitations.
The program targets several barriers that restrict MSMEs’ access to credit. These include insufficient collateral and limited information on borrowers’ credit history. Short loan maturities and risk aversion among local financial institutions are also on the list. By mobilizing resources through a guarantee fund, the program intends to ease these constraints. The approach seeks to better align financing with the real growth trajectories of smaller businesses.
Through the program and technical assistance, the IDB will provide capacity building to strengthen the governance and operation of the guarantee fund. The fund will be setup by the Ministry of Finance. Support will also enhance Belize’s Development Finance Corporation’s ability to manage, promote, and monitor the fund. This combination of financing and institutional support is central to the program’s design. It reflects a dual focus on capital and capacity.
The IDB global credit program has a maturity period of 25 years and a grace period of 5.5 years. Its interest rate is based on SOFR. These terms are intended to accompany the fund’s medium- and long-term objectives. The operation marks a step forward for MSME finance in Belize. It consolidates the IDB’s role in supporting inclusive private-sector development in the country.