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AMOUNT
OF LOAN IN FOREING EXCHANGE
General
Policy
The Bank is prepared to finance, with foreign exchange, established
percentages of the estimated total cost of projects. The percentages
vary according to the country group to which the country that is the
site of the proposed project belongs.
Any
financing in local currency of the local cost component of a project
will be in addition to the portion to be financed in foreign exchange.
Also, in the case of projects which include cofinancing, such financing
may be considered as part of the local contribution.
Country
Groups
For the purpose of applying its operational policies, the Bank groups
its borrowing member countries on the basis of their relative level
of development within the region:
- Group
A. The more advanced countries: Argentina, Brazil, Mexico, and
Venezuela.
- Group
B. Middle developing countries: Chile, Colombia, and Peru.
- Group
C. Countries with insufficient markets: The Bahamas, Barbados,
Costa Rica, Jamaica, Panama, Suriname, Trinidad and Tobago, and Uruguay.
- Group
D. The least-developed countries: Belize, Bolivia, Dominican Republic,
Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Nicaragua,
and Paraguay.
Matrix
With respect to the percentage
of foreign exchange financing
of total costs, the following
matrix will apply:
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Country Group
A
B
C
D
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Maximum Percentage
60
70
80
90
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In case of hybrid loans, with a
fast-disbursing component as
well as a long-term investment
component, the matrix percentages
referred to above will be applied
to the investment component,
while the fast-disbursing component
will be financed in its entirety
and in foreign exchange.
Financing
Above Established Percentages
The percentages of foreign exchange
financing of total costs indicated
above are those that
the Bank
would
apply regularly and consistently.
At the borrower's request,
the financing in foreign exchange
could exceed these percentages
if the cost of the goods and
services that would have to
be imported for a specific
project exceeds the applicable
level, provided that this does
not mean a substantial reduction
in the local contribution and
provided that it is shown that
no alternative source of financing
exists on reasonable terms.
For no category the share of
foreign exchange is to exceed
90%.
The levels of financing according
to the various country groups will
be supplemented with an additional
ten-percentage-point increase for
projects of programs that are geographically
targeted to poor beneficiaries
or that a significant majority
of the beneficiaries of the projects
or programs, according to conditions
prevailing in each country, are
poor. However, in no case should
the total financing exceed 90%.
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Prevailing
Reference Documents:
GN1335 and amendments, December 1979 to March 1980,
AB1378, May 1989,
AB1704, August 1994.
AB-2151, January 2003
CS-3400, January 2003
GN-2200, February 2003
GN-2200-1, March 2003
AG-1/02
*
The operational policies of the Inter-American Development Bank are
intended to provide operational guidance to staff in assisting the Bank's
borrowing member countries. Over the course of the Bank's more than 40 years of
operations, the approach to developing operational policies has taken
various forms, ranging from the preparation of detailed guidelines to
broad statements of principle and intent. Many policies have not been
updated since they were originally issued, and a few reflect emphases
and approaches of earlier years which have been superseded by specific
mandates of the Bank's Governors, the most recent being the
Eighth Replenishment mandates of 1994.
In
accordance with the Bank's information disclosure policy, the Bank is
making all of its operational policies available to the public through
the Public Information Center. Users please note that the Bank's operational
policies are under a process of continuous review. This review process
includes preparation of best practice papers summarizing experience
at the Bank and other similar institutions, and sector strategy papers.
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2007 Inter-American Development Bank. All rights reserved. Terms
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