OECS Private Sector Financing : Ridging the Supply-Demand Gap

Abstract

The high levels of public debt and
 persistent fiscal deficits limit Organization of Eastern
 Caribbean States (OECS) governments' ability to pursue
 counter-cyclical fiscal policies during future economic
 downturns, leaving private investment as the key driver of
 future growth. This study on private sector financing in the
 OECS analyzes the issue of access to finance from three
 different angles: the demand side; the supply side; and the
 enabling environment. It is not possible to fully analyze
 problems of access to finance without a broad approach.
 Demand side, supply side and the enabling environment are
 jointly analyzed in this study to identify key measures that
 could be applied in order to improve the enabling
 environment, create better opportunities for business growth
 and innovation (diversification), and place financial sector
 institutions in a position to provide finance, especially to
 SMEs, in a sustainable way.