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Action Plan for C and D Countries
The Action Plan for C&D countries program has been designed to finance activities that will support the modernization and strengthening of the beneficiary countries' technical and managerial capacity and that will consolidate the institutional sustainability of public agencies to promote more effective use of Bank project funds.

Project Detail

Country

El Salvador

Project Number

ES-T1253

Approval Date

January 22, 2016

Project Status

Closed

Project Type

Technical Cooperation

Sector

OTHER

Subsector

OTHER

Lending Instrument

-

Lending Instrument Code

-

Modality

-

Facility Type

-

Environmental Classification

-

Total Cost

USD 503,777.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 503,777.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
ATN/OC-15476-ES Sovereign Guaranteed USD - United States Dollar Ordinary Capital Nonreimbursable
Operation Number ATN/OC-15476-ES
  • Lending Type: Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Nonreimbursable
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.
Blogs
Published 2023
Inovação no financiamento do desenvolvimento sustentável: conheça os vencedores do prêmio BID-SBFin
Uma estrutura baseada em tokens para financiar projetos com impacto social ou ambiental. Um modelo de classificação de risco de crédito considerando elementos de sustentabilidade e responsabilidade social, que pode ser utilizado por qualquer instituição financeira do mundo. Estes são os temas dos artigos que levaram as duas primeiras colocações no Prêmio BID-SBFin, uma parceria
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 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.
Blogs
Published 2023
US Banking Fragilities and the Potential Impacts on Latin America and the Caribbean
Several bank failures, and the high volatility in US bank equity prices, have raised considerable concern in recent weeks. The March 10 failure of Silicon Valley Bank (SVB) followed just two days later by that of Signature Bank shocked many observers. There were hopes that these were isolated incidents, but other regional banks soon came
Publications
Published 2022
Building Effective Beneficial Ownership Frameworks: A Joint Global Forum and IDB Toolkit
The availability of beneficial ownership information on legal persons and arrangements is a key requirement of tax transparency and a key instrument in the fight against tax evasion and other financial crimes. The purpose of this toolkit is to present the various approaches to ensure the availability of beneficial ownership information in line with the exchange of information standards and to present some lessons learned from the peer reviews carried out by the Global Forum on Transparency and Exchange of Information for Tax Purposes. This toolkit should provide jurisdictions with relevant inputs to carry out their own internal assessment of the most suited methods for implementation, taking into account their unique legal, policy, and operational frameworks. The toolkit is not an end in itself. The IDB and the Global Forum Secretariat are available to complement the guidance contained in the toolkit by delivering tailored assistance to jurisdictions that need help in enhancing their beneficial ownership frameworks.
Publications
Published 2022
Accelerating Digital Payments in Latin America and the Caribbean
Between the first and second quarters of 2020, e-commerce website traffic from five of the regions major markets increased by over 150%. The COVID-19 pandemic has pushed and pulled tens of thousands of businesses in the region to go digital. The impact and advantages of such digitalization are quite telling for small and medium-sized enterprises (SMEs) in particular. SMEs in LAC can diversify their customer base and reach 20 foreign markets when operating online, while those that operate offline can only reach from two to five. As todays digital economy becomes the norm, universal basic services such as education and medical care are also taking place online. Digital payments are critical to enabling this transformation at both domestic and cross-border levels. But many challenges still exist that preclude the broadening of digital payment use throughout the region from a lack of access, regulatory harmonization and affordable payment solutions, to a need for further public and private sector cooperation, consumer protections and an open, inclusive and interoperable payment ecosystem. In 2021, the World Economic Forum and the innovation laboratory of the Inter-American Development Bank, IDB Lab, jointly launched the Payments to Advance Growth for All (PAGA) initiative to address these challenges. This initiative has convened a diverse community of over 100 public and private sector representatives to explore, through dialogue, how to best unlock the true benefits of digital payments in LAC. As digital payments continue to thrive and drive financial inclusion and economic growth, we hope this paper will provide a timely snapshot of the most pressing issues and highlight the importance of public-private and private-private cooperation to advance digital payments for all in an open, inclusive and safe manner. * The opinions expressed in this work are those of the authors and do not necessarily reflect the views of the IDB, its Board of Directors or the countries they represent, nor of the MIF (IDB Lab) Donors Committee or the countries it represents.
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