ASUNCION, Paraguay - Leaders from the Inter-American Development Bank (IDB) and the Government of Spain gathered in Asunción, Paraguay today to sign a new co-financing framework agreement. Spain was represented by the State Secretariat for International and Ibero-American Cooperation of the Ministry of Foreign Affairs and Cooperation, as well as the State Secretariat for Economy and Business Support of the Ministry of Economy at the signing, which established the general conditions governing the joint financing of sovereign guaranteed development projects by the IDB and Spain. Overall, the objective of this new agreement is to facilitate co-financing between these partners to promote the economic and social development of the IDB’s borrowing member countries.
Working specifically to support the achievement of the Sustainable Development Goals in Latin America and the Caribbean (LAC), this new chapter of the IDB-Spain partnership builds off an expansive portfolio in such topics as disaster prevention, regional integration, sustainable energy, and climate change. In the context of this agreement, special emphasis will be placed on co-financing efforts in water and sanitation given Spain’s historic participation in this sector in the LAC region.
An example of this is the Spanish government’s transformative work through the Spanish Cooperation Fund for Water and Sanitation in Latin America and the Caribbean. Through up to US$579.6 million in contributions, the Fund has financed 19 programs in rural and peri-urban areas in 13 countries and is expected to reach more than 3 million direct beneficiaries and 10 million indirect beneficiaries.
Also worth noting is the strategic role played by the Spanish General Cooperation Fund, through which Spain helps to finance technical cooperation operations proposed by the IDB to advance efforts to modernize states, boost competitiveness, and promote regional integration. Through this Fund, Spain has also collaborated with the Multilateral Investment Fund (MIF) and Inter-American Investment Corporation, both members of the IDB Group.
Currently, Spain is the IDB’s most active European partner and has contributed more than US$855 million since 2008 to advance development in Latin America and the Caribbean.
More about the Inter-American Development Bank
The Inter-American Development Bank is a leading source of long-term financing for economic, social and institutional projects in Latin America and the Caribbean. Besides loans, grants and guarantees, the IDB conducts cutting-edge research to offer innovative and sustainable solutions to our region’s most pressing challenges. Founded in 1959 to help accelerate progress in its developing member countries, the IDB continues to work every day to improve lives.
More about the Spanish Agency for International Development Cooperation
The Spanish Agency for International Development Cooperation (AECID), under the State Secretariat for International and Ibero-American Cooperation of the Ministry of Foreign Affairs and Cooperation, is the main management body for Spanish cooperation, which combats poverty and works for sustainable human development. Its charter states that the agency was created to foster full development, conceived as a fundamental human right, with the fight against poverty as part of the process for building this right. To this end, the Agency follows the guidelines of the IV Master Plan of Spanish Cooperation, in accordance with the international agenda of the Millennium Development Goals and with a focus on three crosscutting axes: gender perspective, environmental quality and respect for cultural diversity.
More about the Spanish Ministry of Economy, Industry, and Competitiveness
The objective of the Spanish Ministry of Economy, Industry and Competitiveness is to proposal and implementation of the Government's policy on economic issues, and to push for reforms aimed at improving competitiveness, scientific research, technological development, innovation in commercial policies, the internationalization of the Spanish economy, and politics that support business. It is also in charge of trade policy and support to companies, as well as other capacities and duties conferred by law.Specifically, the Ministry is tasked with coordinating with development banks on behalf of Spain.