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Posted: 3/31/2009 8:38:05 AM
MEDELLÍN, Colombia – Caribbean countries have told the Inter-American Development Bank (IDB) that they are counting on its financial support during this period of global economic crisis.
Bahamas Prime Minister Hubert Ingraham delivered the message on behalf of fellow borrowing member states Barbados, Guyana, Jamaica and Trinidad and Tobago at the closing session of the 50th annual meeting of the IDB’s Board of Governors in Medellín, Colombia yesterday.
He noted the region was currently facing “extraordinarily difficult and uncertain times” with the majority of its economies on track for negative growth and experiencing declining tourist receipts, reduced levels of foreign direct investments, increased fiscal deficits, escalating levels of private sector debt and rising unemployment.
In this context, Ingraham thanked the IDB for its support of the region thus far through its institutions such as the Inter-American Investment Corporation and the Multilateral Investment Fund and programmes and instruments such as FINPYME and the Liquidity Programme for Growth Sustainability.
“We view the increase in the Bank’s ordinary capital and in particular the replenishment of the Fund for Special Operations as vital, especially as greater support will be needed during the current global crisis,” he said.
Ingraham also acknowledged that prior to the global downturn many countries, including the Bahamas, were looking to private financial markets to fund essential capital projects.
However, he said the conditions nowadays of the financial markets were such that countries that would not have otherwise done so may now have to resort to seeking funding from multilateral institutions such as the IDB.
“We are therefore in support of increasing the Banks’ capital.
“We look forward to the Bank developing a new institutional strategy that makes effective use of additional resources to support social safety net programmes, poverty and inequality reduction, infrastructure investments and climate change.
“Similarly we look forward to the re-evaluation of the Bank’s private sector policy in order to support the Region’s development and exploration of other measures to help expand capital flows to the public and private sectors of our Region,” he said.
In his remarks, IDB President Luis Alberto Moreno noted that last year the bank approved a record US$11.2 billion in funding, far above the average of US$7 billion in recent years.
He further stated that approvals could rise to US$18 billion this year.
Nonetheless, Moreno said, in order to maintain high levels of financing until international capital markets recover and the crisis ebbs, the IDB will need to review its policies.
“We have made a significant effort to provide a counter-cyclical response to the crisis,” he said.
“Facing an unprecedented increase in regional demand, the IDB is in a situation in which its borrowing capacity requires innovative and creative solutions that will allow us to continue to support countries in this difficult environment, without affecting our impeccable credit reputation,” Moreno added.
Posted: 3/31/2009 8:38:05 AM
MEDELLÍN, Colombia – Caribbean countries have told the Inter-American Development Bank (IDB) that they are counting on its financial support during this period of global economic crisis.
Bahamas Prime Minister Hubert Ingraham delivered the message on behalf of fellow borrowing member states Barbados, Guyana, Jamaica and Trinidad and Tobago at the closing session of the 50th annual meeting of the IDB’s Board of Governors in Medellín, Colombia yesterday.
He noted the region was currently facing “extraordinarily difficult and uncertain times” with the majority of its economies on track for negative growth and experiencing declining tourist receipts, reduced levels of foreign direct investments, increased fiscal deficits, escalating levels of private sector debt and rising unemployment.
In this context, Ingraham thanked the IDB for its support of the region thus far through its institutions such as the Inter-American Investment Corporation and the Multilateral Investment Fund and programmes and instruments such as FINPYME and the Liquidity Programme for Growth Sustainability.
“We view the increase in the Bank’s ordinary capital and in particular the replenishment of the Fund for Special Operations as vital, especially as greater support will be needed during the current global crisis,” he said.
Ingraham also acknowledged that prior to the global downturn many countries, including the Bahamas, were looking to private financial markets to fund essential capital projects.
However, he said the conditions nowadays of the financial markets were such that countries that would not have otherwise done so may now have to resort to seeking funding from multilateral institutions such as the IDB.
“We are therefore in support of increasing the Banks’ capital.
“We look forward to the Bank developing a new institutional strategy that makes effective use of additional resources to support social safety net programmes, poverty and inequality reduction, infrastructure investments and climate change.
“Similarly we look forward to the re-evaluation of the Bank’s private sector policy in order to support the Region’s development and exploration of other measures to help expand capital flows to the public and private sectors of our Region,” he said.
In his remarks, IDB President Luis Alberto Moreno noted that last year the bank approved a record US$11.2 billion in funding, far above the average of US$7 billion in recent years.
He further stated that approvals could rise to US$18 billion this year.
Nonetheless, Moreno said, in order to maintain high levels of financing until international capital markets recover and the crisis ebbs, the IDB will need to review its policies.
“We have made a significant effort to provide a counter-cyclical response to the crisis,” he said.
“Facing an unprecedented increase in regional demand, the IDB is in a situation in which its borrowing capacity requires innovative and creative solutions that will allow us to continue to support countries in this difficult environment, without affecting our impeccable credit reputation,” Moreno added.
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