Finances investment loans and investment guarantees to sub-sovereign eligible entities in borrowing member countries without the guarantee and/or counterguarantee of the sovereign. Investment modalities described in this section will apply.
Subnational governments (SNGs) will need to demonstrate (i) legal ability to obtain external financing from IDB, (ii) be creditworthy and (iii) have a solid governance and institutional performance record.
Projects should aim to support participating SNGs increase access to private sector over time. They will also help SNGs improve efficiency and effectiveness, financial and debt management.
- Lending terms and conditions are determined on a market-based approach.
- Loans can be approved in U.S. dollars or in local currency, subject to market availability and operational, legal, and risk management considerations.
- Interest rate and currency conversion options are available.
Investments with defined objectives and scopes
Specific Investment Loans
(ESP)
Finances one or more specific projects or subprojects that are wholly defined at the time the IDB's loan is approved.
More information
Contingent credit line for immediate response after a disaster
Contingent Credit Facility for Natural-Disaster and Public-Health Emergencies
(CCF)
Provides resources for immediate response after a natural disaster or a public heath event of severe catastrophic proportions.
More information
Results of an existing or new government program
Loan Based on Results
(LBR)
Finance the achievement of results of new or existing Government program. The LBR disburses once results have been achieved.
More information
Post-disaster response activities
Immediate Response Facility for Emergencies caused by disasters
(IRF)
Provides rapid financial support for addressing the effects of disasters.
More information
Small independent investment projects
Multiple Works Loans
(GOM)
Finance groups of similar works (a sample of which are fully defined) with specific characteristics.
More information
Loans to small and medium-size enterprises
Global Credit Loans
(GCR)
Finances multi-sector projects granted to intermediary financial institutions to enable them to on-lend to end- borrowers.
More information
Transfer of technical know-how
Reimbursable Technical Cooperation
(TCR)
Transfers technical know-how to strengthen the capacity of entities in developing countries and requires repayment like a regular investment loan.
More information
Project's preparation and start of activities
Project Preparation and Execution Facility
(PROPEF)
Finances project's preparation for individual operations under a global line of credit.
More information
Risk of investment projects
Partial Credit Guarantees
(PCG)
Provides credit enhancement for loans, bonds, or other debt instruments by covering various risks that could lead to default.
More information
Sovereign non-performance risks leading to debt default
Political Risk Guarantees
(PRG)
Covers sovereign non-performance risks of contractual obligations that could trigger debt payment default.
More information
Credit line to support investment loans
Conditional Credit Line for Investment Projects
(CCLIP)
Provides a credit line to finance investment loans as well as issuing guarantees that support investment projects.
More information