MONTEVIDEO, Uruguay – The Ministry of Strategy and Finance of the Government of the Republic of Korea and the Inter-American Development Bank (IDB) signed today an agreement to establish a trust fund to improve the public sector capacity in Latin America and the Caribbean.

By the agreement signed during the Annual Meeting of the IDB’s Board of Governors, Korea and the IDB will work together to strengthen public sector management in all fiscal related sectors including taxation, treasury, fiscal management, statistics, e-government (including procurement, customs service, and e-learning) as well as national planning and budgeting.

The Korean contribution will total up to $40 million with the first contribution of 8,560 million Korean Won (roughly $8 million) to be used for the establishment of the trust fund. The trust fund will help facilitate the efficient allocation and use of public sector resources at the national and the sub-national government level in IDB borrowing member countries.

Korea joined the IDB in 2005 as the Bank´s 47th member. The Asian nation has financed several IDB initiatives since then, including poverty alleviation programs, the development of small- and medium-sized enterprises in Latin America and the Caribbean, and knowledge enhancement programs.

The IDB´s Office of Outreach and Partnerships has facilitated this agreement.