The Inter -American Development Bank (IDB) on Thursday launched its “IDB for cities and regions” initiative, a five -year pioneering pilot that will allow eligible cities, states and regions of Latin America and the Caribbean to access a line of up to 1,000 million dollars in investment loans and guarantees of that institution.
The agency specified in a statement that its initiative will provide local governments with direct access to financing for infrastructure, urban development and provision of services in order to promote sustainable growth.
The program has a total amount of 1,000 million and at the time of allocating the funds will take into account the repayment capacity that these subnational governments may have, as well as that the eligible projects are subject to the fulfillment of the national legal and fiscal frameworks.
In addition to access to financing, this plan seeks to strengthen the development and solvency capacities of said governments of the region through complementary technical assistance.
We recommend you: the IDB and 18 Latin American countries create alliance to combat organized crime
Bid loans seek to strengthen private sector in Latam
According to the president of the IDB, Ilan Goldfajn, by providing this direct access to financing and strengthening institutional capacity, the organization gives the subnational authorities “the tools they need to lead a transformative development in their own communities.”
The pilot phase intends to approve about ten individual operations. The IDB advances that its program will also support the financing of the private sector towards subnational entities that have limited access to capital markets.
Goldfajn stressed that the IDB “aspires to truly be a development bank focused on the private sector, not only directly financing more private sector projects through IDB Invest, but also strengthening the conditions for the private sector to invest.”
IDB Invest is the IDB Group arm that directly supports private companies and projects.
National governments must provide in writing their non -objection to the projects, on which the IDB will supervise the execution and results in development, apart from carrying out a formal evaluation after five years.
With EFE information
Do you use more Facebook? Let us like to be informed
