The presence of Governors and international partners enabled the signing of 13 credit contracts and other agreements within the meeting's framework.
The Annual Meeting of the Boards of Governors of the Inter-American Development Bank and IDB Invest, held in Panama from March 16 to 19, provided a setting to sign agreements to support member countries in Latin America and the Caribbean. The presence of the Governors of the IDB and IDB Invest, as well as other international partners, made the agreements possible. The agreements will allow progress in areas such as climate change and biodiversity, productivity, sustainable development, education and social protection, among others.
In the case of the operational program with the public sector, IDB President Ilan Goldfajn, together with government representatives, signed seven credit agreements to advance the implementation of projects previously approved by the IDB's Board of Executive Directors, in addition to three IDB Invest agreements with countries, all aimed at supporting the region's development.
Argentina: three programs to support the agriculture and wine sectors, and solid waste management.
President Goldfajn and Argentina's Economy Minister Sergio Massa signed loan agreements for three operations totaling $235 million.
Strengthening agricultural health services and enhancing the sustainability of marine resources: This $125 million operation is expected to improve the effectiveness of the control and prevention of pests and diseases that affect the country's animal and plant health assets, increase the diagnostic capacity of plant and animal health laboratories, and strengthen research on oceanographic resources, marine ecosystems, and the coastline. The loan will benefit more than one million private stakeholders in the agricultural sector.
Social, economic, and environmental sustainability of Argentina's wine sector: This $40 million loan seeks to promote the use of technologies and marketing capacity among small and midsize producers, as well as encourage micro, small, and midsize enterprises (MSMEs), especially those led by women and young people, to participate in the sector.
Improving the integrated management of urban solid waste: The signing of two agreements, one for a line of credit of up to $300 million, and a second loan agreement for the first associated operation for $70 million, allows for the financing of works and equipment that will contribute to the proper disposal of solid waste, improve its recovery, and mitigate the negative environmental impacts of open-air dumps, with a focus on social inclusion. The first operation, with additional contributions from the European Investment Bank and the national budget, will directly benefit more than 900,000 residents.
Chile: boosting productivity and promoting sustainable development.
President Goldfajn and Chile's Finance Minister Mario Marcel signed the loan agreement for a credit line of up to $1 billion. The line of credit aims to increase productivity and promote sustainable development in the areas of finance, climate action, and internationalization. With this program, Chile's economic development agency (CORFO), will channel resources for access to credit for MSMEs through institutions, with a focus on those led by women or that support climate action. In total, more than 170,000 MSMEs will benefit, in addition to training close to 8,000 people.
Honduras: strengthening the social protection system and fighting poverty.
President Goldfajn and Honduran Secretary of State for Finance Rixi Moncada Godoy signed a $75.9 million loan agreement for the Program to Support the Integrated Social Protection System II, which will improve the living conditions of 50,000 households in areas of extreme poverty and promote the generation of their human capital and self-management capacity. The program will focus on increasing the minimum income of participating households, improving the use and supply of health and nutrition services for women and children, and basic education and support services for young people, as well as strengthening the Social Protection System.
Uruguay: strengthening post-pandemic public policy and fiscal management.
President Goldfajn and Uruguay's Economy and Finance Minister Azucena Arbeleche signed a $145 million loan agreement for the Program to Strengthen Public Policy and Fiscal Management in Response to the Health and Economic Crisis, which will help design and implement effective and fiscally responsible measures to promote the availability and timely execution of public resources to address the crisis. The operation also seeks to strengthen the countercyclical effect of fiscal policy through temporary policies to protect the income of vulnerable households and increase corporate liquidity, support the provision of essential goods and services, and promote economic and fiscal recovery. This operation is the second in a series to support the Uruguayan Government's strategy to address the pandemic. Uruguay was the region's first country to complete this series.
Similarly, IDB Invest, which provides financing and technical assistance to the private sector, signed the following contracts:
Colombia: first sustainable subordinated bond with Banco de Bogota
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Gema Sacristan, General Business Director of IDB Invest, and Gerardo Hernandez Correa, Legal Vice-President of Banco de Bogota, signed the subscription agreement for the first sustainable subordinated bond issued in the international market by Banco de Bogota for US$230 million. The bond will be subscribed by IDB Invest, as lead investor, and other multilateral entities and impact funds and, with this issuance, Banco de Bogota will finance its social portfolio aimed at MSMEs and social and priority housing. Regarding the green portfolio, Banco de Bogota will finance green buildings, renewable energy, energy efficiency projects, circular economy and sustainable agriculture, among others.
South Korea: bank confirmation agreement with the KEXIM credit agency
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James Scriven, general manager of IDB Invest, and Yoon Hee-sung, president of South Korea's official export credit agency, KEXIM, signed the incorporation of this entity as a Confirming Bank in IDB Invest's Trade Finance Facilitation Program (TFFP). The program aims to promote global and intraregional integration through trade and guarantee liquidity in periods of market volatility.
Costa Rica: financing to the private sector through Davivienda
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James Scriven, general manager of IDB Invest, and Arturo Giacomin, president of Banco Davivienda Costa Rica, one of the country's leading private banks, closed a financing deal for of up to $115 million to increase Davivienda's portfolio of green products. Costa Rica has committed to an absolute maximum of net emissions by 2030, in line with Paris Agreement goals, and this project will help reduce greenhouse gas emissions by supporting and financing the environmental and social agenda of banking in Costa Rica.
In addition, three signed agreements will allow IDB Invest to work with key partners to finance initiatives related to decarbonization, biodiversity and education in Latin America and the Caribbean:
Canada: collaboration agreement to foster nature-based solutions.
To promote the adoption of nature-based solutions in Latin America and the Caribbean, President Goldfajn met with a group of delegates from Global Affairs Canada, led by Cheryl Urban, director of Economic Development and International Financial Institutions, after signing a CAD$5 million program funded by the Canadian Government. The program aims to improve the integration of biodiversity and ecosystem services, increase private sector investment, improve the allocation of national budgets and promote gender-sensitive policies. It also aims to create enabling conditions in recipient countries to build climate resilience and protect ecosystems, while generating opportunities that address the needs of the infrastructure, agriculture, forestry and other land-use sectors.
Caribbean: collaboration agreement to decarbonize the shipping industry.
Richard Martinez, the IDB's vice president for countries, signed an agreement with Marc Sampson, president of the Caribbean Shipping Association (CSA), and Milaika Capella Ras, the association's general manager to accelerate the decarbonization of the shipping industry and boost economic and social development in the region. The agreement also aims to improve the efficiency and effectiveness of maritime transport activities and services, as well as to optimize port operations and related internal connection activities.
Croatia: education and digital transformation program in the region.
The IDB and Croatian Finance Minister Marko Primorac signed a collaboration agreement to develop education projects that reduce inequality in Latin America and the Caribbean. The goal is to ensure that young people acquire the skills needed to thrive and improve productivity. Opportunities will be explored to develop life skills, digital transformation and STEAM (science, technology, engineering, arts and mathematics) skills training for women and girls.
In addition to these commitments, together with the Governors, extensive discussions and agreements were reached to strengthen strategic support for the Amazon region between the IDB, countries in the region and donor countries to address the call for urgent and coordinated action to protect the ecosystems of the Amazon Basin.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region. Take our virtual tour
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
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