IDB Group Governors Review Progress in Private Sector Reform Proposal
Washington, D.C., October 11, 2013 — The Committees of the Boards of Governors of the Inter-American Development Bank (IDB) and the Inter-American Investment Corporation (IIC) met yesterday to assess progress in the development of a renewed vision for the activities of the IDB Group with the private sector.
The review was mandated by the Boards of Governors of the IDB and IIC in March based on an evaluation of the IDB’s private sector operations that concluded that an integration of these activities would contribute to the development effectiveness goals of the Group, which is comprised of the IDB, the IIC and the Multilateral Investment Fund (MIF).
In light of this recommendation, the governors requested that the Group develop a renewed vision for its activities with the private sector, and an analysis of possible operational changes and structural alternatives needed to implement it. Moreover, they also requested the Group to design an action plan for the replenishment of the MIF.
As a result, in May, an ad-hoc committee representing the IDB and IIC Boards of Executive Directors and the MIF Donors Committee was established to work with management on the new vision. The work of the committee has drawn from the lessons learned of similar institutions as well as comprehensive discussions among the governing bodies of the IDB, IIC and MIF and the IDB Group’s management.
The proposed renewed vision, which focuses on strategic selectivity, a systemic approach and development effectiveness, will allow the IDB Group to attract and design better projects that deliver greater development impact, and build strategic partnerships to mobilize additional development resources to Latin America and the Caribbean.
The committees supported the proposed vision and instructed management to further the analysis of consolidating the IDB Group private sector activities into a dedicated entity. Additionally, they decided to initiate the MIF replenishment process.
The ad-hoc committee of the IDB and IIC and the MIF Donors Committee will present detailed proposals for discussion in March, during the IDB and IIC 2014 Annual Meetings in Bahia, Brazil.
Last year, the IDB Group approved $2 billion in loans, guarantees, equity investments and grants to finance private sector projects.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2012, the IIC approved more than 70 operations totaling some US$400 million. Since its inception in 1989, the IIC has approved approximately 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Flavia Sandoval