Capital Increase Facts
- Since its founding, the IDB has had nine increases of its ordinary capital.
- On July 21st, 2010, the Board of Governors of the IDB formally approved the terms of the Bank’s latest capital increase. The increase took effect on February 29, 2012.
- The agreement increases the Bank’s Ordinary Capital by $70 billion to over $170 billion. It also increased resources for the Fund for Special Operations and the IDB Grant Facility, which will be used to provide an unprecedented aid package to Haiti.
- A total of $1.7 billion will be contributed by shareholders in paid-in capital during this period. The remaining $68.3 billion will be in the form of callable capital, which are pledges by member countries and do not represent cash outlays.
- The Bank’s capital increase will be implemented through 2016 as legislative branches in member countries appropriate the necessary funds.
- The capital increase agreement sets the Bank’s Institutional Strategy for the period 2010-2020. In addition an agenda to improve efficiency, transparency and governance of the IDB.
- The Institutional Strategy 2010-2020 focuses on reducing poverty and inequality, promoting sustainable growth as well as providing preferential support to the least developed countries. It also seeks to promote development through the private sector.
- In 2015 the Governors approved an Update to the Institutional Strategy (UIS) for 2016-2019. The UIS maintains the goals of reducing poverty and inequality and promoting sustainable growth.
- However, the UIS addresses emerging challenges in the Region and, thus, establishes what the organization should focus on over the next four years. The UIS identifies three main development challenges:
- Social exclusion and inequality
- Low productivity and innovation
- Lack of regional economic integration
The UIS also identifies three cross-cutting issues that need to be considered when addressing each of the three development challenges:
- Gender equality and diversity
- Climate change and environmental sustainability
- Institutional capacity and the rule of law