BASSETERRE, St. Kitts – A successful 2009 has been completed by the Inter-American Development Bank (IDB) with record levels of loan approvals and disbursements to Latin American and Caribbean countries setting them on a path of growth for the coming year.
Data released by the IDB reveal that by the end the 2009 fiscal year, the institution approved 165 new operations totalling US $15.9 billion, an increase of US $4.7 billion from 2008. Disbursements rose to nearly US $12 billion from US $7.6 billion last year.
In early 2009 when regional economies were plunged into recession, demands for financing skyrocketed and many countries resorted to seeking assistance from regional and international financial institutions. This aid, according to IDB President Luis Alberto Moreno, has set the region on a path for better growth prospects in 2010.
During his yearend report to the Bank’s Board of Executive Directors, President Moreno highlighted the importance of the rapid response by the bank in bringing some measure of relief to struggling countries. Although Latin America and the Caribbean avoided an economic collapse similar to that which followed recessions in past decades, Moreno strongly noted that neither the region nor the IDB should be content with “simply averting disaster”.
“The fact that our economies are still standing after this crisis leaves us with no excuses. The political and economic maturity our region has displayed, as well as the response capacity of our governments and multilateral institutions such as the IDB, are proof that Latin America and the Caribbean can shape their own destiny,” quoted Moreno in an recent IDB press statement.
The IDB attributed the boost in its lending capacity to financial and structural reforms, which it claims have given the institution “agility, flexibility and financial strength” over the past two years.
To continue providing similar levels of support and avoid a sharp drop in lending starting in 2011, the IDB will have to expand its authorized capital, which currently stands at US $101 billion.
