## ECCU CBI Programs: Regional Significance and Risks

_Selected Issues Papers, May 30, 2025_

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## Bibliographic details
- Authors: Janne A Hukka
- Published: May 30, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229012584.018

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### Summary
- The Citizenship-by-Investment Programs (CBI) have long been recognized in their importance to fiscal revenue in the ECCU, but there is less clarity over their broader economic contributions.
- Investor demand in this market can be highly unpredictable, especially as the programs have come under increased international scrutiny.
- The paper takes stock of recent CBI developments in the ECCU and estimates that total investments under these programs far outweigh those directly contributing to government revenue.
- The foregoing underscores the need for ongoing regional efforts to reduce the CBI programs’ risk susceptibility and to strengthen management of residual risks.

### Key findings and observations
- Total investments under ECCU CBI programs far outweigh the portions that directly contribute to government revenue.
- Investor demand is highly unpredictable and sensitive to international scrutiny.
- There is limited clarity on the broader economic contributions of CBI beyond fiscal revenue.

### Risks identified
- Fiscal risks from unpredictable CBI revenue flows.
- Program risk susceptibility driven by shifts in investor demand and international scrutiny.
- Insufficient transparency and limited ex-post assessment of CBI projects impeding informed regional best practices and assessments of systemic significance.

### Policy recommendations and risk mitigation measures
- Clearer provisions for CBI revenues’ budget use to mitigate fiscal risks.
- Enhanced transparency standards for CBI programs.
- Ex-post assessments of CBI projects to:
  - Inform regional best practices.
  - Support assessments of the programs’ systemic significance.
  - Aid development of contingency plans.

### Subject and keywords (as listed)
- Subject: Balance of payments, Contingency planning, Economic integration, Economic sectors, Financial crises, Foreign direct investment, Foreign exchange, Monetary unions, Tourism
- Keywords: Caribbean, CBI investment option, CBI programs' risk susceptibility, CBI reform initiative, Citizenship-by-Investment, Contingency planning, ECCU, Foreign Direct Investment, government CBI revenue, Monetary unions, Non-tax Government Revenue, post assessments of CBI, Tourism

### Publication metadata (as listed)
- By Janne A Hukka
- May 30, 2025
- Pages: 10
- Volume: 2025
- Issue: 067
- Series: Selected Issues Paper No. 2025/067
- DOI: https://doi.org/10.5089/9798229012584.018
- ISBN: 9798229012584
- ISSN: 2958-7875

*Source: ECCU CBI Programs: Regional Significance and Risks — Selected Issues Papers (IMF), Janne A Hukka, May 30, 2025.*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/05/29/eccu-cbi-programs-regional-significance-and-risks-567303_