The Board of Governors of the Inter-American Development Bank, which oversees the Bank’s operations in representation of the 48 member countries, on Friday received a Report that sets up a formal vote for the Bank’s Ninth General Capital Increase.
In keeping with an agreement reached by Governors at the IDB’s Annual Meeting in Cancun in March, the Board of Governors has 30 days to approve the document, titled “Report on the Ninth General Increase in the Resources of the Inter-American Development Bank.”
If approved, the Bank’s capital would be increased by $70 billion to sustain an annual lending level of $12 billion.
The proposal establishes $2 billion in donations for Haiti over the next ten years and converts an additional $186 million in undisbursed loans into grants. It also provides $479 million for debt relief for Haiti.
In addition, the text provides for full funding of the Bank’s concessional window, known as the Fund for Special Operations. The Report also sets a financial framework to ensure the Bank will remain on a strong financial footing and retain the capacity to provide counter-cyclical financing when needed.
- Pablo Bachelet