Do you know what the Inter-American Development Bank (IDB) is?

The Inter-American Development Bank (IDB) is a joint development bank set up in 1959 to help Latin American and Caribbean countries grow economically and socially. Forty-eight member countries own it, including some European and American countries. The bank gives money in the form of handouts and loans.

Learn about the Inter-American Development Bank (IDB).

The IDB helps Latin American and Caribbean countries make development plans and gives them money and technical help to make their economies grow in a way that is good for the environment, makes them more competitive, makes society fairer, fights poverty, updates the government, and encourages free trade and regional integration. The IBD gave $13.6 billion to 94 projects in 2021 as loans.

The Inter-American Development Bank gets the money it loans to its member countries in the bond market. The bonds are backed by the loans the IDB gives out, backed by the capital pledged by bank members who don’t draw money. The bonds have a triple-A rating and were sold at market rates. With a triple-A grade, the member countries can borrow money at low costs. With a 30.01% stake, the U.S. owns the most IDB shares. Both Brazil and Argentina own 11.35 percent. Third is Mexico, with a 7.3% stake. Japan is in fourth place, with a 5% stake.

Unique Things to Think About

Since October 2022, the Inter-American Development Bank has given $56.1 billion to 601 projects. In 2022, Suriname, Guyana, Jamaica, and Barbados successfully completed projects aimed at modernizing and reforming their governments. Other countries finished projects in 2022 about social spending in Ecuador, energy in Mexico, and the environment in Columbia and Barbados. Focusing on social inclusion, economic integration, and innovation are some of the bank’s present goals. It’s also interested in gender problems, climate change, and different kinds of people.

Luis Alberto Moreno, head of the IAB, said that the bank’s main goals were to fight inequality and improve public services in the countries it works with. Moreno said that change is needed and pointed to the many protests in the region’s streets this year. That was the end of the commodity boom, Moreno said. Latin America hasn’t grown since 2014. Since then, the area has had the worst growth in the world’s economies.

Mauricio J. Claver-Carone assumed the role of President of the Inter-American Development Bank (IDB) in September 2020, following his election during an online meeting. The Bank’s Board of Governors made this decision. Her five-year term began on October 1, 2020. Claver-Carone previously held positions at the U.S. National Security Council, serving as a senior director for Western Hemisphere affairs and as a deputy assistant to former President Donald Trump. He was also a senior advisor to the Under Secretary for International Affairs at the U.S. Department of the Treasury.

Conclusion

• Its goal is to help Latin American and Caribbean countries grow economically and socially. It is a joint bank called the Inter-American Development Bank (IDB).
• The U.S. is one of 48 countries that make up the IBD. In 2021, it gave $13.6 billion to 94 projects.
• The Inter-American Development Bank gets the money it loans to its member countries in the bond market.
• By far, the United States owns the most shares in the IDB, with 30%.