IDB - SOE
66, Avenue d´Iéna
75116 Paris
+33 (1) 40693100
+33 (1) 40693120 IDBEurope@iadb.org
This page was generated: November 22, 2009, 09:06
The IDB, Europe and Israel Resources & Operations
------------------------------------------------------------------------------------------------------------------------------------------------------- Financial Resources
The IDB obtains its own financial resources from its members, borrowings on the financial markets, trust funds that it administers, and through cofinancing ventures.
The Bank’s financial resources comprise the Ordinary Capital (OC), the Fund for Special Operations, the Intermediary Financing Facility and around 50 trust funds established by individual countries or groups of countries.
The Bank has an Ordinary Capital of USD 101 billion, of which only a 4.3 percent is paid-in. The remaining 95.7 percent is callable capital. That, along with the preferred creditor status given the IDB by its borrowing member countries, serves as backing for bonds issued in the world financial markets.
At the occasion of the Eighth General Increase in IDB Resources, approved in 1994, non-regional countries agreed to more than double their share in the Bank from 7.1 to almost 16 percent , with the European share rising from 6 to 11 percent. In addition, non-regional countries gained an additional seat on the Board of Executive Directors.
The IDB’s bond issuance program recently has ranged from USD 4.6 billion to USD 8.7 billion per year (in 2006, the borrowing program is around USD 6.2 billion) and finances about 90 percent of OC disbursements. The Bank’s debt rating is AAA, the highest available.
In the past 6 years, the IADB has issued in 18 different currencies — Australian dollar, Brazilian real, Canadian dollar, Chilean peso, Colombian peso, euro, Great Britain pound, Hong Kong dollar, Hungarian forint, Iceland krona, Japanese yen, Mexican peso, New Zealand dollar, Polish zloty, Swiss franc, New Taiwan dollar, South African dollar, and US dollar.
In 1998, the IDB launched its first issue denominated in euros. In 2002, the Bank issued up to USD 2,185 million in Europe, which represents 26 percent of the total of bond issues, with denominations in euros and Swiss francs.
The Fund for Special Operations, which totals USD 10 billion in paid-in contributions from all member states, provides loans on concessional terms to the region’s weakest economies-- Bolivia, Guyana, Haiti, Honduras and Nicaragua.
The Bank’s Intermediate Financing Facility is used to reduce interest rates on certain loans from the OC to a group of low-income countries: the Dominican Republic, Ecuador, El Salvador, Guatemala, Jamaica, Paraguay and Suriname. The total IFF annual program has a ceiling of USD 250 million through 2008.
