IDB Group approves US $ 21.6 billion in loans due to the health crisis
The Inter-American Development Bank, IDB Invest and IDB Lab carried out a historic effort to face the economic and social impact of the coronavirus pandemic and lay the foundations for recovery
The Inter-American Development Bank, IDB Invest and IDB Lab (the IDB Group) carried out a historic effort in 2020 to help its 26 member countries in Latin America and the Caribbean to cope with the economic and social impact of the coronavirus pandemic and to settle the foundation for recovery and sustainable growth, through the approval of a record $ 21.6 billion in new financing.
In response to the unprecedented need in the region - the region most affected by COVID-19 in the world - the Bank reformulated its processes and streamlined its operations, achieving increases of 11% in approvals for sovereign guaranteed loans and 55% in disbursements, compared to 2019.
In total, the IDB approved US $ 12.6 billion for public sector projects in 2020. IDB Invest, the IDB Group's arm for the private sector, complemented these efforts with US $ 9 billion in approvals, almost double the total in 2019. IDB Lab , the Group's innovation incubator, increased its operations by 40%, from 90 to 126 projects, 20 of which were related to the pandemic.
“We must see this crisis as an opportunity to capitalize on the creativity, resilience and optimism that have always characterized our region,” said President Mauricio Claver-Carone in his year-end address to the Bank's Board of Directors. "We are proud that the IDB Group has contributed to many of these efforts in 2020, and we want to be leaders in supporting the region's recovery in 2021."
The IDB Group's response to the pandemic totaled US $ 8.076 billion and focused on financing to meet immediate public health needs, guarantees for vulnerable populations, economic productivity and employment, and fiscal measures to help mitigate economic impacts. .
In his address on the state of the Bank to the Board of Directors, President Claver-Carone highlighted initiatives, such as assisting countries to ensure that they had personal protective equipment (PPE) in place during the first days of the pandemic and income guarantees. minimum for 750,000 older adults in Bolivia.
In addition, the Bank announced that it has mobilized US $ 1 billion to help borrowing member countries purchase and distribute COVID-19 vaccines.
The IDB also provided assistance to countries in Central America and the Caribbean that were affected by hurricanes Eta and Iota in November.
The year 2021 will be “a crucial time for the IDB Group to demonstrate its leadership in Latin America and the Caribbean,” said President Claver-Carone. "We will continue to work with our governments to respond to the pandemic and reactivate economic growth through job creation and increased investment in dynamic sectors such as nearshoring and digitization, while addressing climate change and gender issues".