The Inter-American Development Bank (IDB) completed its second risk-transfer transaction with private insurance companies, leveraging credit insurance protection to diversify its portfolio and unlock capital for additional lending.
This transaction provides $300 million in credit insurance coverage across two sovereign exposures on the IDB’s balance sheet. By releasing capital with a lending multiplier of up to four times, the deal expands the Bank’s ability to increase development financing, supporting critical projects and improving lives in Latin America and the Caribbean. The coverage is distributed among seven insurance companies in the United States and Europe, including four new counterparties participating in this initiative.
As a pioneer in credit-substitution transactions and guarantees, the IDB continues to lead innovative collaborations with Multilateral Development Banks (MDBs), governments, and the private sector. This effort reinforces the IDB’s strategy to maximize lending capacity and aligns with the recommendations of the G20-sponsored MDB Capital Adequacy Framework Review.
been a lifeline for low-income countries, providing them with affordable development funding when few other options exist. IDA has helped improve millions of lives and supported development results that have moved countries forward.
faced school closures due to extreme weather, with low-income countries losing an average of 18 school days each year. By 2050, the
microbes such as bacteria, viruses, fungi and parasites, are essential for the health and welfare of both animals and humans.
director’s office at the World Bank. Coming from the NL Ministry of Finance, my previous job was coordinating the team responsible for World Bank, IMF and G20 matters where my focus was on the World Bank and sovereign debt. Great to be at the Bank now and to remain engaged – albeit in a different role – in the leading multilateral development bank.
Netherlands. West African countries that are part of the
You must be logged in to post a comment.