Board of Governors

The highest authority of the Bank is vested in the Board of Governors, composed of representatives of all member countries. Governors are usually ministers of the economy or finance, presidents of central banks or other officials of comparable rank.

In January 2007, the Board of Governors approved debt relief for Haiti under the Enhanced HIPC Initiative. Haiti, which reached decision point, was expected to receive debt relief under this initiative in the amount of $60.4 million in net present value terms. Also in January, the Committee of the Board of Governors met in Amsterdam to consider debt relief for the poorest member countries and concessional finance reform.

Prior to the inaugural session of the Annual Meeting, a Special Meeting of the Governors was held to consider the Sustainable Energy and Climate Change Initiative. The initiative would offer Bank support to all countries in the region for clean development, biofuel production and clean alternative energy sources and the development of climate change adaptation programs—not just with funding but with research and as an enabler of public-private partnerships. The Special Meeting also considered the Water and Sanitation Initiative, presented as a major investment in the health of beneficiary communities and the lowering of health care costs.

At its Forty-Eighth Annual Meeting, which took place in Guatemala City, Guatemala, on March 18–20, 2007, the Board of Governors approved the financial statements of the Ordinary Capital, the Fund for Special Operations (FSO) and the Intermediate Financing Facility for 2006, and later in the year selected Ernst & Young LLP to carry out the external audits for the 2007 through 2011 fiscal years.

In addition, the Board of Governors approved 100 percent debt relief for Bolivia, Guyana, Haiti, Honduras and Nicaragua on loan balances outstanding as of December 31, 2004, from the FSO. Under the debt relief agreement, which complements the Multilateral Debt Reduction Initiative launched by the G-8, the IDB forgave approximately $3.4 billion in principal payments and $1 billion in future interest payments. By canceling these debts, the IDB underscored its commitment to assisting the poorest countries in Latin America and the Caribbean in their efforts to reach the United Nations Millennium Development Goals, which focus on halving poverty by 2015.

The Board of Governors also agreed to ensure the FSO’s financial viability through 2015. IDB member countries confirmed their commitment to the fund’s sustainability, agreeing to assess, no later than 2013, the need for an eventual replenishment.

Finally, during its Annual Meeting, the Board of Governors acknowledged the invitation extended by the United States to host the 2008 Annual Meeting. The Governors resolved to hold the 2009 Annual Meeting, which will mark the Bank’s fiftieth anniversary, in Medellín, Colombia.

In June 2007, the Board of Governors approved the creation of the IDB Grant Facility (GRF) for the purpose of making grants appropriate for dealing with special circumstances arising in specific countries (currently Haiti only) or with respect to specific projects. The GRF is funded by transfers from the FSO and possible direct contributions from donor countries.