International financial entities will increase the amount of finance available for private businesses and projects in Latin America
The International Finance Corporation (IFC), the World Bank, the Inter-American Development Bank (IDB) and the American Investment Corporation (IIC) have announced their willingness to increase resources for the financing of "eco-friendly projects, infrastructure, agribusiness and even educational projects," developed by private enterprise.
The Inter-American Development bank will earmark $1.8 billion to fund projects related to the Central American integration process.
This was stated by Luis Alberto Moreno, president of the bank, at the meeting of the Central American Integration System (SICA).
Moreno was quoted by Laprensagrafica.com as saying: “More and better regional integration will be key for economic recovery, global competitiveness and employment generation, as well as promoting equality and the reduction of poverty".
In good times, multilateral lending agencies do not have too many customers. In times of crisis, everyone needs them.
To continue to grow and not stagnate, Latin America needs foreign investment in an amount ranging from 5% to 6% of the GDP in the region. It is $200 billion, a figure too large for the current scope of these credit institutions.
Rodrigo Lara Serrano pointed out in his article published in Americaeconomia.com that "multilateral bankers are going through times of plenty. ‘Everyone is knocking on the door and asking for money,’ said a source who asked to remain anonymous. Normally entities must search for good projects. 'Now we choose the projects, although this is delicate: How do you compare things when everyone says that their needs are of vital importance?'"
During a meeting of Governors, IDB President Luis Alberto Moreno announced that the entity will increase its support to countries in the region.
Proceso Digital published on its website: "’At this juncture, we have to lend more and that is our obligation and why we are here,' said the head of the IDB in his opening speech.
Moreno said the IDB is ready to meet this 'obligation' to raise capital to the region but he did not specify the amount.
In times of credit crunch from the usual sources, it is appropriate to remember that there are other alternatives for financing projects.
The Andean Development Corporation (CAF), the International Finance Corporation (IFC) of the World Bank, the Inter-American Investment Corporation (IIC) of the IDB, and the Central American Economic Integration Bank (BCIE) are all sources of financing for high impact development projects by the private sector which are highly unused by our bankers and businesses.
The IDB, the Andean Development Corporation (CAF) and the Latin American Reserve Fund announced that they will make $9.3 billion available to governments in the region to deal with the financial crisis.
The amount could double starting next year and is in response to the need for joint international action to deal with the crisis, the IDB, the Andean Development Corporation (CAF) and the Latin American Reserve Fund announced.
The Inter-American Development Bank on Tuesday announced a $500 million line of credit for Central America in hopes of heading off food-price unrest.
Trying to get ahead of potential unrest because of rising food and energy prices, the Inter-American Development Bank on Tuesday announced a new $500 million line of credit for six Central American nations and the Dominican Republic.