The Inter-American Development Bank (IDB) approved a $300 million loan for the social and economic inclusion of the Venezuelan migrant population in Colombia. The operation also includes a non-refundable $17,589,000 leveraged by the Bank through the Global Financing Mechanism (GCFF).
The program's objective is to contribute to the effective socioeconomic integration of Venezuelan migrants through the expansion of the regularization and management of the information of this migrant population, the improvement of access to social services and protection against human trafficking, and promoting the recognition of labor competencies.
The program will seek to benefit the 1.74 million Venezuelan migrants, focusing on the 983,000 estimated who need to regularize their immigration status. Its regularization will allow them access to social services, protection, and certification of labor competencies. According to an evaluation study conducted by the IDB, it will help improve their income and access to formal jobs. This process will also benefit host populations by promoting policies that will strengthen coordination and information exchange capacities among public agencies.
Colombia is the main host country for the second-largest migratory exodus today. Since 2015, it has received more than 1.74 million Venezuelan migrants, equivalent to 37.4% of the total flow that has left Venezuela.
This operation is aligned with Vision 2025 - Reinvesting in the Americas: A Decade of Opportunities, created by the IDB to achieve recovery and inclusive growth in Latin America and the Caribbean, with a focus on reactivating the productive sector, promoting social progress, strengthening good governance and adequate institutions and gender equality and diversity.
The IDB loan of $300 million has a repayment term of 18 years, a grace period of 6.5 years, and an interest rate based on LIBOR.
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.