This week, the Inter-American Development Bank’s governors gather for their annual meeting. Much is at stake as the region reels under the compound crises of COVID-19 and recession. But none of this urgency is yet evident in the IDB’s public case to its member countries.
CGD Policy Blogs
Today the IDB is again making the case for a capital increase to its shareholders. Yet, despite an unfolding crisis that threatens development progress in Latin America to a degree that eclipses the Global Financial Crisis, talk of a financing cliff at the bank is absent from its appeal for more capital. That’s because a spike in crisis financing has yet to materialize in IDB’s lending numbers.
Last week DFC announced that it signed a framework agreement with the government of Ecuador to refinance up to $3.5 billion of the country’s external debt to China. In exchange, according to reporting by the Financial Times, the Ecuadorian government will commit to exclude Chinese companies from its telecom networks.
In a surprise move Tuesday, the US Treasury announced its intention to nominate Mauricio Claver-Carone to the presidency of the Inter-American Development Bank (IDB), a role traditionally held by a citizen of a borrowing member country from the region.
Here at CGD, we’re always working on new ideas to stay on top of the rapidly changing global development landscape. Whether it’s examining new technologies with the potential to alleviate poverty, presenting innovative ways to finance global health, assessing changing leadership at international institutions, or working to maximize results in resource-constrained environments, CGD’s experts are at the forefront of practical policy solutions to reduce global poverty and inequality. Get an in-depth look below at their thoughts on the 2018 global development landscape.
In the world of sovereign debt workouts, the relationship between Argentina and the Paris Club has tended to look like Lucy, Charlie Brown, and the football. Time and again, Argentina (Lucy) would earnestly declare interest in striking a deal to repay its debt to club creditors only to pull back at the last minute. So imagine everyone’s surprise at this week’s announcement that Charlie Brown finally got to kick the football.