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Line of Credit for a Facility for the Preparation and Execution of Projects
The objective of this operation is to establish a conditional revolving
line of credit for DR in accordance with the terms approved by the
Bank in March 2000 for the Project Preparation and Execution
Facility (document GN-2085-2, "New flexible lending instruments").

Project Detail

Country

Dominican Republic

Project Number

DR-L1015

Approval Date

March 15, 2006

Project Status

Implementation

Project Type

Container

Sector

FINANCIAL MARKETS

Subsector

BANKING MARKET DEVELOPMENT

Lending Instrument

-

Lending Instrument Code

-

Modality

Facility

Facility Type

PROPEF (Facility for Project Preparation and Execution)

Environmental Classification

-

Total Cost

USD 5,000,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 5,000,000.00

Financial Information
Publications
Published 2024
Taxation when Markets are not Competitive: Evidence from a Loan Tax
We study the interaction of market structure and tax-and-subsidy strategies utilizing pass-through estimates from the unexpected introduction of a loan tax in Ecuador, a quantitative model, and a comprehensive commercial-loan dataset. Our model generalizes bank competition theories, including Bertrand-Nash competition, credit rationing, and joint-maximization. While we find the loan tax is distortionary, neglecting the possibility of non-competitive lending inflates estimated tax deadweight loss by 80% because non-competitive banks internalize some of the burden. Conversely, subsidies are less effective in non-competitive settings. If competition were stronger, tax revenue would be 10% lower. The findings suggest that policymakers should consider market structure in tax-and-subsidy strategies.
Publications
Published 2024
The Promises of Digital Bank Accounts for Low-income Individuals
The push for adopting digital modes of payment rests on three promises: increased efficiency of transactions, increased financial inclusion, and improvements in the financial well-being of low-income individuals. We experimentally test the extent to which these promises are fulfilled. We exploit the random assignment into an intervention to encourage direct deposits of recurrent government benefits into digital bank accounts in Colombia. Switching from cash to direct deposits reduces disbursement errors and increases access to benefits among eligible beneficiaries. It also increases the ownership of bank accounts, the demand for formal loans, and loan take-up among individuals without a financial history. However, we do not find evidence of improvements in financial well-being across any of our metrics.
Publications
Published 2023
MICI Reflections: Access to Remedy and Dispute Resolution: Contributions to the Conversation Based on MICI's Experience
The notion of remedy has gained importance and become a central issue on the international development agenda, despite accountability mechanisms and financial institutions have been subject to continued criticism in terms of their ability to provide effective remedy for communities claiming to be affected by development projects. This note aims to explore the role of alternative dispute resolution in access to remedy, and to specifically examine the contributions that MICIs Consultation Phase has made in providing solutions to communities that believe they have been adversely affected by IDB Group-financed development projects between 2017 and 2022.
Publications
Published 2022
The Importance of Financial Information in the Transport Sector: an Encouragement to New Outlooks and Perspectives in Light of the IDB's Vision 2025
Services in the transport sector in Latin America & the Caribbean are provided mainly by private enterprises of different sizes. However, as technical transport specialists, our knowledge and understanding of their management strategies and financial objectives remains limited. Most of the sectorial attention is rightly dedicated to the analysis of the effectiveness and efficiency of the products/services provided by companies, leaving out of the picture the focus on the “business” side of their structures and operations. Such lack of awareness can be linked to several reasons. But one of the motives that mostly hinder transport practitioners from further analyzing these aspects is the ability to speak the private companies “financial language”. Engineers, planners, and even economists are not always familiar with the instruments of financial analysis, management accounting or corporate finance; concepts that are at the core of this language. When it comes to financial analysis, sectors practitioners are mainly biased in thinking about PPPs issues and project finance. This is certainly not a fault per se! However, such a narrow focus can unquestionably represent an obstacle to the full comprehension of the phenomena and rationales that impact the sectors functioning
Publications
Published 2022
Independent Country Program Review Ecuador 2018-2021
This independent country program review (ICPR) analyzes the IDB Group's country strategy and country program with Ecuador during the 2018-2021 period. ICPRs assess the relevance of the Bank's country strategy and provide aggregate information on the program alignment and execution. If the available information allows, ICPRs also report on progress toward achieving the objectives that the IDB Group established in the country strategy. This review by the Office of Evaluation and Oversight (OVE) is intended to provide the Boards of Executive Directors of the IDB and IDB Invest with useful information to analyze the country strategies submitted for their consideration.
Publications
Published 2023
President's Report 2023
IDB Report of the President 2023.
Publications
Published 2024
Latin America and the Caribbean Standardized Public Debt Database: Data as of June 2023
This database compiles current standardized statistics on sovereign debt issuances for the Latin American and Caribbean (LAC) region and contains biannual data starting in 2006 through June 2023. Sovereign debt data is classified by legislation, creditor, currency, and maturity, among other areas, for 26 LAC countries. The availability of valid, comparable, and standardized public debt data is essential for the implementation of sound policies. As such, at the core of the LAC Debt Group initiative is the development of a standardized sovereign debt database to help debt managers, policymakers, and other actors of financial markets analyze the evolution and composition of public debt in the region and conduct cross-country comparisons. LAC public debt offices provided the data in response to a questionnaire specifically designed to allow comparability. The questionnaire, whose response is non-compulsory, is intended to compile current standardized statistics for objective and homogeneous definitions of public debt.
Publications
Published 2021
Research Insights: How Can Macro-Prudential Policy Control the Impact of Cross-Border Bank Flows on Emerging Market Economies?
Advanced economies (AEs) transmit economic crisis to Emerging Market Economies (EMEs) through cross-border bank flows, impacting their output, credit, and assets prices. Empirical evidence suggests that the transmission of the crisis from AEs to EMEs is higher in the absence of macro-prudential policy. A macro-prudential policy in the form of a levy on EMEs banks, when credit grows faster than deposits, reduces the propagation of AEs crisis to EMEs: the consumption drop is 12 percent lower, and the reaction of the labor market smoother, so consumers are better off with the policy than without it.
Publications
Published 2022
A roadmap to the mobility and logistics trends that are reshaping Latin America and the Caribbean
Today, governments are acutely aware that merely building new infrastructure is not the solution, and they are seeking the IDB Groups assistance in designing smarter transportation services that will meet their peoples expectations. This document describes the five broad shifts that are driving the IDB Groups transportation portfolio: (i) the social dimension of transportation services; (ii) new institutional and regulatory arrangements; (iii) logistics performance; (iv) secure resources for maintaining transport infrastructure, and (v) the digital transformation.
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