The Year's Lending

Lending by Sector, 2005    48% Social Development   37% Competitiveness   15% Reform and Modernization of the State

Lending by Sector, 1961-2005 49% Competitiveness   34% Social Development   17% Reform and Modernization of the State

Summary

This chapter includes summaries by country with brief descriptions of loans, guarantees, technical cooperation operations, small projects and MIF operations approved by the Bank in 2005. The summaries and introductory paragraphs for each country refer only to operations over $1 million. The chapter concludes with information on the Bank’s lending and technical cooperation program.

The 2005 loans and guarantees approved by the Bank and cumulative totals, as of December 31, 2005, less cancellations, came from the following sources:

• Ordinary Capital (OC): 72 loans for $6.4 billion and 11 guarantees for $298 million brought the cumulative total of loans to 1,780 for $117.5 billion and the cumulative number of guarantees to 17 totaling $630 million.
• Fund for Special Operations (FSO): 20 loans totaling $410 million brought the cumulative total of loans to 1,173 for $17.5 billion.
• Other funds: There were no loans approved in 2005. Cumulative total loans were 209 for $1.7 billion.

The Bank agreed to partially defray up to five percentage points of the interest on seven loans for $138 million, approved in 2005 from the Ordinary Capital, with funds from the Intermediate Financing Facility (IFF) created under the Sixth Replenishment.

TABLE I • DISTRIBUTION OF LOANS BY SECTOR OF ACTIVITY 1 (In millions of U.S. dollars) Sector 2005 % 1961-2005 % Competitiveness $  2,651.6 37.1 $  67,765.9 49.4    Energy 1,122.9 15.7 18,723.1 13.6    Transportation and Communication 568.0 7.9 14,844.5 10.8    Agriculture and Fisheries 74.7 1.0 13,334.2 9.7    Industry, Mining and Tourism 68.0 1.0 12,550.4 9.2    Multisector Credit and Preinvestment 0.0 0.5 3,623.1 2.6    Science and Technology 32.3 0.5 1,593.4 1.2    Trade Financing 380.0 5.3 2,011.6 1.5    Productive Infrastructure 227.7 3.2 842.5 0.6    Capital Markets 178.0 2.5 243.3 0.2           Social Development 3,439.0 48.1 46,602.0 33.9    Social Investment 2,505.6 35.1 18,857.4 13.7    Water and Sanitation 340.0 4.8 8,978.7 6.5    Urban Development 96.5 1.4 7,295.4 5.3    Education 250.0 3.5 5,500.0 4.0    Health 123.6 1.7 2,816.8 2.1    Environment 123.4 1.7 2,664.2 1.9    Microenterprise 0.0 0.0 489.0 0.4           Reform and Modernization of the State 1,056.9 14.8 22,956.4 16.7    Reform and Public Sector Support 99.5 1.4 11,283.3 8.2    Financial Sector Reform 835.2 11.7 6,551.6 4.8    Fiscal Reform 47.9 0.7 3,827.6 2.8    Decentralization Policies 51.6 0.7 720.9 0.5    Modernization and Administration of Justice 4.9 0.1 315.5 0.2    Planning and State Reform 0.0 0.0 118.1 0.1    Parliamentary Modernization 3.9 0.1 76.1 0.1    Civil Society 0.0 0.0 22.0 0.0    Trade Policy Support 13.9 0.2 27.5 0.0    E-Government 0.0 0.0 13.8 0.0 TOTAL $  7,147.6 100% $  137,323.8 100% 1 Categories reflect priority areas of activity according to the Bank's Institutional Strategy.

Total Cost of Projects

The $7.1 billion in Bank loans and guarantees approved in 2005 will help to finance projects involving a total investment of more than $15.5 billion. The Bank’s loans cover only a part of the total cost of the projects being carried out by the borrowing countries. The balance comes principally from the Latin American and Caribbean countries.

Lending and Disbursements, 1996-2005 (In millions of U.S. dollars)

Disbursements

The Bank’s disbursements on approved loans amounted to $5.3 billion in 2005, compared with $4.2 billion in 2004. As of December 31, 2005, cumulative disbursements, including exchange adjustments, totaled $117.6 billion, or 86 percent of the loan amounts approved by the Bank. The 2005 disbursements and cumulative totals as of December 31, 2005 by funds include

• Ordinary Capital: $4.9 billion, bringing the cumulative total to $100.5 billion.
• Fund for Special Operations: $424 million, bringing the cumulative total to $15.4 billion.
• Other funds: $5 million, bringing the cumulative total from funds administered by the Bank to $1.7 billion.

Repayments

Loan repayments amounted to $5.5 billion in 2005. Cumulative payments as of December 31, 2005, were $61.2 billion. Repayments received by the Bank during the year, and cumulative as of December 31, 2005, were

• Ordinary Capital: $5.2 billion, bringing the cumulative total, before repayments to participants, to $52.3 billion.
• Fund for Special Operations: $301 million, for a cumulative total of $7.3 billion.
• Other funds: $5 million, bringing the cumulative total to $1.6 billion.

See www.iadb.org/projects