Latin America Bank Needs $80 Billion Capital Hike, Head Says
- IDB is key to rebuild virus-savaged region, Claver-Carone says
- Lending to Latam would be cut by 25% without the capital boost
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The top development bank for Latin America will need to cut lending by at least 25% from last year unless members approve a proposed $80 billion capital increase to help nations battered by the coronavirus, according to its president.
The Inter-American Development Bank lent a record $21.6 billion to the region in 2020 to deal with the pandemic by frontloading funding assigned to this year and next, President Mauricio Claver-Carone said in an interview on Wednesday. Lending will need to return to between $12 billion to $16 billion starting this year, even as the region continues to struggle, absent approval for more resources, with the largest part coming from the U.S., he said.