Financial Products

The IDB Group uses loans, grants, guarantees and investments to fund development programs in Latin America and the Caribbean.

Loans, grants and guarantees are used for public and private investment projects, for policy reforms, to help countries cope with financial crises or disasters, and for national and regional technical cooperation.

The majority of the Bank’s projects and technical cooperation programs are financed via loans, whether at market rates or using concessional resources, and have standard terms and conditions.

Grants by the institution are limited, and provided mainly for microentrepreneurs.

The Bank provides guarantees for private loans, helping borrowing countries to gain access to international financial capital markets.

Eligibility for lending varies, depending on the type of project, financing instrument, and fund.

The IDB also invests in some small business projects through the Multilateral Investment Fund (MIF), an independent fund managed by the Bank. The Inter-American Investment Corporation (IIC), a member the IDB Group, also provides investment in small and medium size companies, either directly or through equity funds.