Chile to Boost Transparency and Integrity with IDB Support

Chile will launch a new program to enhance transparency and integrity in the public sector with the backing of a $100 million loan approved by the Inter-American Development Bank (IDB).

This is the second and final operation under a programmatic policy-based lending scheme. The first was a $50 million loan approved by the IDB in July 2021 to support regulatory, technological, and governance measures to improve transparency and integrity in line with international standards. 

The second operation, approved by the Bank’s Board of Executive Directors, will take further steps to implement the measures  and achieve results. Its overall objective is to boost transparency and integrity by strengthening the legal framework and establishing institutional mechanisms for this purpose.  

The program will support activities to make it easier to access public information, to more effectively prevent and detect misconduct in the public administration, and to make the financial transparency framework more effective. It will also support policy actions that include a national public integrity strategy; actions to promote fiscal and municipal transparency; regulatory, technological and governance measures to improve transparency and integrity; and steps to make budgetary information easier to access. 

The program also aims to increase adherence to the principle of administrative integrity, supporting measures like improving the quality of public spending and raising the standards of probity and transparency, updating the Code of Ethics and Best Practices for lobbyists and special interest representatives, and improving the government’s ethical compliance.

The program will benefit Chilean citizens who interact with the government, civil society organizations, public officials, oversight bodies, academia and economic agents, and people or entities subject to financial regulations. In addition, Chilean society as a whole—and taxpayers and government employees in particular—will benefit from more user-friendly and timely access to public information.

The $100 million IDB loan has an 18-year repayment term, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region. Take our virtual tour.