IDB Group Increases Additional Lending Capacity to $138 Billion to Support Development in Latin America and the Caribbean

• Additional lending capacity has increased by 68% over the past year, due to reforms, improved credit-rating criteria 
• IDB Group lending headroom is among main contributors to MDBs’ expanded lending capacity to $792 billion over the next 10 years 
• IDB Group on track to reach ambition of providing $500 billion in financing over the next decade   

MANILA — The Inter-American Development Bank Group (IDB Group) has increased its additional lending capacity to $138 billion over the next decade to support development in Latin America and the Caribbean, reflecting the impact of institutional reforms and financial innovation.  
 
Additional lending headroom has increased by 68% this year, from $82 billion to $138 billion over the next 10 years, exceeding initial projections. The increase is driven by capital-adequacy reforms, exposure-exchange agreements, and revised credit-rating agency criteria.  
 
The IDB Group’s $138 billion in additional space accounts for nearly 20% of the $792 billion in additional lending capacity collectively reported today by the heads of multilateral development banks (MDBs) in Manila.
 
The IDB Group is on track to reach its ambition of providing $500 billion in financing over the next decade.   
 
“The increase in lending capacity demonstrates how capital-adequacy measures, innovation, and prudent risk management can help multilateral development banks expand their scale and impact while maintaining financial strength,” said IDB Group President Ilan Goldfajn. 
 
At the IDB, the public-sector arm of the IDB Group, additional lending headroom increased as a result of financial innovations as well as revised credit-rating agency criteria for the institution’ s financial strength. 
 
At IDB Invest, the private-sector arm of the IDB Group, lending headroom was supported by internal risk-tolerance adjustments, expanded commercial risk-transfer activities, and improved credit-rating agency criteria.