KPMG 2010 Caribbean Region Financing Survey

Our research covers lenders with a combined exposure of US$2.5 billion to hotel and real estate in 20 countries in the region. Topics include:

• industry outlook for the Caribbean
• type projects that have succeeded
• type projects that have failed
• changes in lending parameters
• lessons learned

Financing trends suggest that loan to value ratios are relatively stable but that debt service coverage ratios and interest rates margins are moving up. Lenders are going back to basics i.e. promoting sound and “proven” credit underwriting practices. Nevertheless financial institutions’ overall confidence in the Caribbean is on the rise, despite the cautious lending environment. Moreover, lenders remain committed to the region and are willing to back projects with strong fundamentals.