Ninth General Capital Increase (IDB-9)
Demand for development lending by Latin America and the Caribbean has increased in recent years. This increase accelerated after the global financial crisis hit the Latin America and the Caribbean, and the poorest and most vulnerable countries in the region were hit especially hard.
The sharp increase in demand for IDB resources prior to and after the crisis—together with the long-term development needs related to reducing poverty and inequality, responding to climate change, and promoting regional integration—led to a reevaluation of the Bank´s capital levels.
The IDB's Board of Governors on July 21, 2010, agreed to the terms of the proposed increase of the Bank’s Ordinary Capital by $70 billion, the largest expansion of resources in the Bank’s history, and to provide an unprecedented package of financial support to Haiti. The agreement also includes a proposal to increase, by $479 million, the Fund for Special Operations (FSO), which finances operations in the region’s poorest nations.
Member countries approved the resolution autorizing increases in the Bank’s Ordinary Capital on January 18, 2012, and the increase entered into effect on February 29, 2012. The resolution to approve the FSO was approved on October 31, 2011. The resolutions provide that the Bank’s capital increase will be fully implemented through 2015 as parliaments in each of its member countries appropriate the necessary funds.
The capital increase was accompanied by a process of institutional reforms aimed at strengthening the Bank, making it more transparent, accountable and efficient.