2023-10-11 14:38:57
Inter-American Development Bank (IDB) President Ilan Goldfajn said the financial institution could increase its lending capacity by up to $112 billion over a decade once it obtains fresh capital from the share of shareholders for its private branch.
A plan to increase the capital of IDB Invest – the lender’s private arm – is expected to be ratified at the bank’s annual meeting in March, Goldfajn told Archyde.com on the sidelines of World Bank and IMF meetings which were held in Marrakech on Wednesday.
“If we add up the efforts of the public sector and the private sector, we can go from $34 billion to $112 billion,” Goldfajn said.
Discussions around fundraising “are going very well, because we are focusing capitalization on the private (sector), which has models that tend to be well accepted.”
According to Goldfajn, once commitments are obtained from member countries, the challenge will be to ensure that the funds are deployed. IDB Invest is owned by its 48 member countries, 26 of which are in Latin America and the Caribbean.
Since taking over as head of the IDB, Goldfajn has pledged to increase development finance as part of a broader push by multilateral development banks to help countries address climate change and other economic challenges.
Experts estimate that emerging and developing economies need $2.4 trillion a year to address global climate-related costs. (Reporting by Jorgelina do Rosario and Elisa Martinuzzi, Editing by Karin Strohecker and Toby Chopra)
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