Based on the principle of net income neutrality with loans, i.e. no cross-subsidies between loans and guarantees:
Period: Max. 20 years if tied to policy-based interventions or Max. 25 years if supporting investment projects.
Weighted Average Life (WAL) of underlying guaranteed obligation:
Max. 12.75 years if tied to policy-based interventions or Max. 15.25 years if supporting investment projects.
Fees:
Guarantee Fee: Same as the IDB’s Ordinary Capital (OC) lending spread (80bps for 2025).
Stand-by Fee: Same as the commitment fee rate (50 bps for 2025). Charged on the difference between the maximum guarantee amount and the actual guaranteed exposure amount.
Reimbursement of Claim: Payable upon demand unless otherwise determined by the Bank on a case-by-case basis.
This project will help reduce the housing deficit in Ecuador by providing mortgage loans for affordable housing through intermediate financial institutions.
The project’s overall impact is to increase access to Public-Interest Housing (PIH) for families with the ability to pay by providing mortgage loan solutions. Among other outcomes and impacts, the project placed US$300 million of PIH loans through private banks and local entities between 2019-2022. It also increased the percentage of women over 15 with an active mortgage loan to 6%. In addition, it increased the value-added in construction activities in the PIH segment to US$68.2 million between 2020-2022, while increasing mortgage loans for PIH in relation to total mortgage loans to 12.6% over the same period.
This project will promote reforms towards a more productive and healthier ocean in Bahamas through several aspects of the Blue Economy: promoting MSMEs, digitalization and blue bond financing, while improving resilience through enhanced climate risk management in coastal and offshore areas, including better management of marine resources and reducing marine pollution.
The reforms included in this program will benefit firms operating in the Blue Economy by improving the business and investment climate for ocean related economic activities, and by promoting better management practices that improve the sustainability of marine resources that those firms harvest. This will also benefit Bahamian citizens and firms by promoting reforms that will reduce marine pollution. Among other outcomes and impacts, the reforms supported 249 MSMEs in the Blue Economy, and 1,666 employees benefitting from them. Likewise, the Ocean Health Index (OHI) increased to 85.5, while the Illegal, Unreported and Unregulated (IUU) Fishing Index decreased to 1.97, as the annual revenue from flat fishing licenses and permits issuance increased to US$154,000.