Washington, April 22, 2009-Leading
multilateral development banks announced today they will increase their
support to Latin America and the Caribbean by providing as much as US$
90 billion during the next two years in a joint effort to spur economic
growth in the region by coordinating their crisis response initiatives.
The Inter-American Development Bank and the Inter-American Investment Corporation
(IDB/IIC), the World Bank Group (IBRD, IFC and MIGA), Corporacion Andina
de Fomento (CAF), the Caribbean Development Bank (CBD) and the Central
American Bank for Economic Integration (CABEI) are working together to
identify partnerships to increase their collective impact and explore new
opportunities to protect the economic and social gains achieved in the
region during the last five years.
The IDB/IIC is expected to provide US$ 29.5 billion of the total while
the World Bank Group plans to provide $35.6 billion over the next two years.
In addition, CAF plans to provide US$ 20 billion while CABEI and CBD are
expected to provide US$4.2 billion and US$500 million respectively.
“Latin America and the Caribbean have achieved substantial economic
and social progress over the last five years and we must ensure that this
is not lost because of the external shock of the global crisis. We need
to avoid a social and human crisis,” said World Bank Group President
Robert B. Zoellick. “I welcome the close cooperation among the
multilateral regional banks and the World Bank Group, and I am committed
to making this common platform work as we help lay the foundations for
an economic recovery.”
Support from the IDB may increase further as the Bank is currently working
on measures that may boost lending in the short run. The IDB has
also started a process to review its capital to ensure adequate capacity
to finance long-term development needs, under a resolution approved by
its Governors in the Annual meeting at the end of March in Medellin.
"The IDB is working with its multilateral partners to make a collective
response and is committing a significant portion of its existing lending
capacity to combat the crisis,” said IDB President Luis Alberto
Moreno. "In order to continue to support the region in its
ongoing financing needs, the IDB will be seeking additional capital resources.”
Unlike past crises, the effects of the current economic crisis are being
transmitted in the region primarily through the real economy. This
crisis has halted more than five years of sustained economic growth —averaging
5.3 percent a year— fueled in part by the adoption of responsible economic
policies and a boom in commodity prices.
“In moments such as the current one, it is evident that multilateral development
agencies should coordinate their work to meet the region’s needs,”
CAF President Enrique García, said. “This joint effort, which
we are forming, will allow us to offer concrete solutions to face the present
situation. The amounts pledged by CAF under this effort will add to other
similar efforts that we been doing since the beginning of the crisis.”
The Latin American and the Caribbean region is not the epicenter of the
crisis; on the contrary, this time the region is suffering the impact of
the global shock. Latin America managed to lift 52 million people
out of poverty from 2002-2007 but this trend may reverse and it is important
to protect the region’s social gains.
CAF: Nathalie Gerbasi, + 58 (212) 209-2315, email@example.com
IDB: Romina Nicaretta, + 1(202) 623-1555, Rominan@iadb.org
IFC: Adriana Gomez, + 1(202) 458-5204, firstname.lastname@example.org
MIGA: Malloy L. Saleson, +1 (202) 473-0844, email@example.com
World Bank: Sergio Jellinek, + 1(202) 458-2841, firstname.lastname@example.org