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Historical Milestones 1989-1998

1989

  • Governors recommend an increase in resources and give the Bank the mandate to grant sector loans, allocate 50 percent of the lending program to low-income sectors, protect the environment, strengthen the role of women in development, and provide stronger backing to microenterprise.
  • First financing for the environmental management of a river basin. The $14.9 million benefits the Paute River basin in Ecuador.
  • The Board of Executive Directors approves a reorganization of the Bank.
  • Special ProjectPreparation Facility established.
  • New methodology for interest rates on loans from ordinary capital.
  • IIC begins operations. Loans and investments to Argentine, Brazilian and Uruguayan firms.

1990

  • Seventh Increase in Resources: $26.5 billion in the ordinary capital (with $663 million payable in cash) and $200 million in the FSO.
  • First six sector loans, totaling $1.3 billion. The first one is for communications and transportation in Mexico.
  • Private Sector Development Program created.
  • Global loan programs for microenterprise are set up and the first three loans are approved for Colombia, Ecuador and Uruguay.
  • Ten environmental projects are approved.
  • Overseas Economic Cooperation Fund of Japan agrees to contribute to a new cofinancing mechanism, the Small Projects Fund.
  • Regional Network for Research on Economic Policy is created with the financial support of the Bank, to study key development issues.
  • After 30 years of operations, total Bank financing exceeds $47 billion. This supports the following sectors in descending order of lending volume: energy, agriculture and fishing, transportation and communications, industry and mining, public health and sanitation, urban development, and education, science and technology.

1991

  • Twelve sector loans are approved for a total of $2 billion. One of these loans supports economic stabilization in Peru and the normalization of its relations with the international financial community.
  • Loans granted to help establish and put into operation investment funds in El Salvador, Haiti, Nicaragua and Peru. Also, loans are granted to Uruguayan and Venezuelan social investment funds.
  • Annual meeting of the Board of Governors in Nagoya, Japan is the first held in Asia.
  • Japan-IDB Scholarship program set up.
  • First financing for a regional assistance program to benefit underprivileged children and teens in Central America and Panama.
  • Technical Cooperation Fund Program created.

1992

  • Belize joins the Bank.
  • $56 million of financing approved to expand science and technology programs at the University of the West Indies in Barbados, Jamaica and Trinidad and Tobago.
  • Indigenous Peoples' Fund created, based in La Paz.
  • The Bank grants its largest loan yet: $450 million for cleaning up the polluted Tietê River in São Paulo, Brazil.
  • $23 million in financing approved for grassroots and nongovernmental organizations, municipalities, and universities, and for natural resource management, health, education and agricultural activities on natural resource extractive reserves in the State of Acre.
  • IDB Cultural Center created.

1993

  • Croatia and Slovenia become members of the IDB as successor states of Yugoslavia.
  • Multilateral Investment Fund (MIF) established in the framework of U.S. President George H.W. Bush's Enterprise for the Americas Initiative.
  • MIF's first operations.
  • Medium-term bond program (MTN) established in several currencies with an authorization of $1.25 billion. By the end of the year, $226.8 million worth of (MTN) bonds had been issued.
  • First financing for coastal ecosystem protection, to Ecuador, totaling $14.9 million.
  • First financing for a primary education reform program that includes development programs for monolingual students in indigenous languages (Guarani). Provided to Paraguay for $52.8 million.
  • A $200 million loan for the Andean Development Corporation that marks a change in policy toward this type of institution, in that it allows for broader and more discretional use of the resources and greater emphasis on the private sector.
  • A $500 million loan for the Caruachi hydroelectric dam in Venezuela. It is the largest loan for infrastructure approved by the IDB to date.
  • First loan to a national environmental program: $58 million to Colombia.

1994

  • The governors approve an increase in resources and give the Bank the mandate to strengthen the fight against poverty and to support modernization of the private and public physical infrastructure, integration, the environment, and the private sector.
  • Reorganization of the Bank. Creation of the Office of the Chief Economist, and of the Regional Departments (I, II, III), Social Programs and Sustainable Development Department, Strategic Planning and Operational Policies Department, Private Sector Department, Integration and Regional Programs Department.
  • Dollar window created for leading to the private sector. It provides for more options in terms of exchange risks.
  • Inter-American Institute for Social Development (INDES) created.
  • Policy on information disclosure adopted.
  • Independent Investigative Mechanism established.

1995

  • Eighth Increase in Resources: $40 billion in the authorized ordinary capital (with $1 billion payable in cash) which brings the total amount to $101 billion, and $1 billion in the FSO, which would increase it to a total exceeding $10 billion.
  • Financial support totaling $3.2 billion for Argentina and Mexico, which were severely hit by the effects of the Mexican devaluation in 1994.
  • Several loans in new fields of state reform, such as modernization of the judiciary in Colombia and Costa Rica and strengthening of democratic institutions in Paraguay.
  • First operations of the new dollar window for direct loans to the private sector without government guarantee. Cofinancing of these operations begins (A and B loans). Partial guarantee policy adopted, without state counterguarantee, for private sector projects.
  • For the first time, the Bank heads a consultative group. The group will provide support for bringing Nicaragua back into international finance channels and reducing its external debt.
  • New and reformulated old financing for recovery in Haiti totaling $315 million.
  • A $180 million loan to Brazil for an innovative slum improvement program.
  • The IDB's Office in Japan opened.
  • Public Information Center opened.

1996

  • Most of the $7.3 billion in lending for the year is used for poverty reduction and social sector reform ($2.7 billion) and modernization of the state ($2.4 billion).
  • The Bank supports the peace process in Guatemala and recovery in Nicaragua.
  • Loans for reform of state and local government in Argentina, Brazil and Colombia.
  • Single Currency Facility created to give options to borrowers vis-à-vis exchange risks, enabling them to choose to receive loans in one of four different currencies or in a basket of currencies.
  • First issue of global bonds for $1 billion.
  • First operations to prevent domestic violence and to assist women.

1997

  • The Bank proposes the Informatics 2000 Initiative to collaborate with borrowing countries in planning and coordinating investments in this sector.
  • The IDB organizes a meeting where 25 countries and 22 international organizations pledge $2 billion for the peace process in Guatemala.
  • $250.5 million for financing of electrical interconnection in Central America.
  • A $240 million loan for a gas pipeline between Bolivia and Brazil.
  • Emergency loans to Ecuador and Peru in response to damages caused by El Niño.
  • IPES states that economic reforms over the last 10 years were positive but were inadequate to achieve accelerated growth and improve the distribution of income, and recommends a greater effort to improve governance and education.
  • First partial risk guarantee, without state counter guarantee, for a private sector venture capital project in Colombia.
  • Six member countries of the IDB pledge $20 million to the Fund for the Development of Indigenous Peoples of Latin America and the Caribbean, also known as the Indigenous Peoples' Fund, to be administered by the IDB, which supported the first years of the Fund's operations.

1998

  • The more developed borrowing countries agree to convert $2.4 billion from their resources in their national currencies into hard currency in the FSO to benefit the less developed countries.
  • Loans and disbursements hit annual records of $10 billion and $6.48 billion, respectively.
  • A $9 billion one-year plan outside of normal lending is approved to aid in confronting external financial turbulence. First loan of the program, $2.5 billion to safeguard the financial system of Argentina.
  • The IDB chairs a meeting of the Consultative Group for the Reconstruction and Transformation of Central America, which pledges $6.3 billion for the subregion, which had been devastated by Hurricane Mitch.. It also chairs a meeting of the Consultative Group in Support of Drug Control in Peru, which pledges $277 million to that country.
  • $488 million loan for aid and reconstruction of the Dominican Republic, Guatemala, Honduras and Nicaragua after severe hurricanes, and a total of $600 million in loans to Argentina, Chile, Ecuador, Paraguay and Peru, which were affected by El Niño.
  • A $70.4 million loan to Panama for sustainable development in Darién, the largest protected area in the Central American isthmus, after holding intense consultations with the local population.
  • First citizen security operations. They benefit Colombia and Uruguay.
  • Japan Program established to support the exchange of knowledge and experiences between Japan and the rest of Asia and Latin America and the Caribbean.

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