The Inter-American Development Bank and Inter-American Investment Corporation concluded the 56th Annual Meeting of the Board of Governors last weekend in Busan, Korea. This marked just the second time the meetings had been held in Asia.
Continuing the trend set in recent years, the meetings saw several large pledges of funding from the bank’s Asian members. These included:
- $1.1bn pled to help support economic development projects in Latin America. $1bn will come from the Economic Development Cooperation Fund (EDCF), with the remaining $100mn to be put into new fund for infrastructure investments.
- The Export Import Bank of Korea loaned the Nicaraguan government $66m. The loan will be used to build a water treatment system in the city of Juigalpa.
- The Korean government committed to lend Bolivia $250m, also from the EDCF.
- The Japanese International Cooperation Agency (JICA) agreed to lend Honduras $135m for the Cañaveral – Río Lindo hydroelectric power plants.
- The Peoples’s Bank of China (PBOC) and IDB signed a new MoU which “designs a more comprehensive and strategic cooperation plan with a long-term vision, in such areas as institutional cooperation, trade and investment, finance and knowledge sharing.”
Undoubtedly the most significant development to come out of this year’s meetings was the announcement that the IDB and IIC would merge their private sector operations. The merger will bring the IIC together with the three IDB departments that current fall under the Vice Presidency for Private Sector and Non-Sovereign Guaranteed Operations: The Department of Structured and Corporate Finance, the Multilateral Investment Fund (MIF), and the Opportunities for the Majority.