capital and funds

Capital and Funds Under Administration

Capital and Funds Under Administration

The Bank finances its operations by issuing bonds in international capital markets. Since 1962, the Bank has held the highest possible credit rating, triple-A. Its financial strength is based on its solid capital base, its conservative investment and lending policies as well as its financial performance and the backing from its member countries.

Forty-eight countries from the Americas, Europe and Asia contribute to the IDB Ordinary Capital (OC) and Fund for Special Operations (FSO). The IDB also administers, on behalf of sovereign and non- sovereign donors, more than 50 Trust Funds that enhance the financing offerings to borrowing member countries.

In July 2010, the Board of Governors agreed to the Ninth General Capital Increase (GCI-9), the largest capital increase in the IDB’s history. The GCI-9 provided $70 billion in additional capital subscriptions to the OC and US$479 million in new contributions to the FSO. The GCI- 9 implementation started in 2011 and was completed in 2016.

The subscribed capital to the IDB after the GCI-9 will amount to US$ 170.9 billion, and contributions to the FSO to US$ 10.2 billion.

In September 2016, the Board of Governors, by means of Resolution AG-9/16, approved the document titled “Proposal for Sustaining Concessional Assistance by Optimizing the IDB’s Balance Sheets”. In accordance with said document, all the assets and liabilities of the FSO, including all receivables from and payable to member countries, were transferred into the OC resources of the Bank, effective January 1, 2017.

Funds Under Administration

Trust Funds are established by sovereign and non-sovereign donors to complement the IDB offerings to its borrowing member countries. The countries and multilateral institutions that contribute to IDB trust funds are Austria, Canada, Chile, China, Denmark, the European Union, Finland, France, Germany, Italy, Japan, the Republic of Korea, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom and the United States.

Among the IDB’s strategic partners and donors that contribute to the trust funds are private sector corporations, foundations and multilateral institutions, fostering strategic partnerships  with the IDB.

The Multilateral Investment Fund (MIF)—created to promote private sector growth thorough grants and investments—is the largest multi-donor trust fund of the IDB.

The Bank also administers multiple single-donor trust funds that provide reimbursable and grant funds to finance consulting services, training, pilot projects and co-financing that complement IDB reimbursable operations and trigger scalability.

To learn more about partnering with the IDB, please visit Outreach and Partnerships and Multi-Donor Funds.

Ninth General Capital Increase

The Ninth General Capital Increase (IDB-9)—the largest capital increase in the IDB’s history—provided additional US$ 70 billion in Ordinary Capital to the IDB significantly increasing its lending capacity.

Composed of paid-in-capital and callable capital, the paid-in portion amounted to $1.7 billion, and the callable capital portion to $68.3 billion. The paid-in-portion was subscribed by individual members based on (i) their share and voting power and (ii) the proportion of paid-in Ordinary Capital with respect to the total increase of capital resources.

Subscribed Capital Stock and Contributions

Capital stock

Capital stock consists of “paid-in” and “callable” shares. After the Ninth General Capital Increase (GCI-9) in 2016, the total authorized Capital Stock of the IDB amounts to US$170.9 billion comprised of US$ 6.0 billion of paid-in capital and US$164.9 billion of callable capital.

Voting power

Voting power is assigned based on the subscribed Capital Stock. Under the Agreement Establishing the Inter-American Development Bank, each member country shall have 135 votes plus one vote for each share held by that country.

Capital Structure

There are 48 member countries of which 26 are regional borrowing members from Latin America and the Caribbean, 2 are regional non-borrowing members (Canada and the United States) and 20 are non-regional non-borrowing member countries from Asia and Europe. Voting power among member countries of the IDB is as follows: Latin American and the Caribbean have 50.015 percent, United States 30.006 percent, Canada 4.001 percent and the non-regional members 15.979 percent.

Contributions to the FSO

Contributions to the FSO were made in the form of non-negotiable, non-interest bearing demand obligations in lieu of the immediate payment of all or any part of a member’s contributions quotas.

Effective January 1, 2017, all the assets and liabilities of the FSO, including all receivables from and payable to member countries, were transferred into the OC resources of the Bank. The total contribution to the FSO of $10.2 billion, net of the General reserve (deficit) of $4.5 billion, was accredited to the OC Balance Sheet as Additional Paid in Capital for a total amount of $5.8 billion.