Sunday, July 4th 2010 - 03:44 UTC

World Bank committed 17.9 billion USD is support of Latam in 2010

The World Bank Group (WBG) committed 17.9 billion US dollars in fiscal year 2010 –a slightly higher figure over last year’s record lending of 17.1 billion- to support countries in Latin America and the Caribbean (LAC) as they recover from the global financial crisis and resume a path of sustained growth, according to the latest report from the multilateral organization.

World Bank Regional Vice President Pamela Cox

The region is expected to post 4.5% growth in 2010, with Brazil leading the recovery with a projected 6.5% expansion on account of strong commodity demand. Other South American economies such as Peru, Argentina and Uruguay are also expected to reach or pass the 4% growth mark. Mexico’s expansion is projected to rebound to 4.3%, marking the fastest growth pace in almost a decade, while Central American economies will lag in the recovery on weak workers’ remittances from the United States, projecting a 2.7% growth for in 2010. Excluding Haiti, growth in the Caribbean region will accelerate modestly to 3.2% in 2010, from 2% in 2009.

“We continue to see the fruits of our unprecedented support to the region’s recovery as it heads towards solid growth in 2010 and beyond, while renewing our commitment to improving human opportunities for all its citizens,” said World Bank Regional Vice President Pamela Cox.

In Latin America and the Caribbean, the WBG maintained its strong support for the region approving 13.9 billion in new loans in fiscal 2010, 13.6 billion from the International Bank for Reconstruction and Development (IBRD) and 0.3 billion from the International Development Association (IDA).

Mexico, Brazil, and Colombia were the largest borrowers, while transportation, public administration and health and social services received the most funding this fiscal year. Support to the region represented 31% of IBRD lending and nearly 24% of total IBRD/IDA lending.

The WBG’s International Finance Corporation (IFC), which supports sustainable private sector development through financing and advisory services, committed 3.9 billion to private sector projects in Latin America and the Caribbean, of which 897 million were in syndicated and parallel loans, a 25% increase in mobilization over the previous fiscal year. IFC's investments spanned 23 countries in the region, with a focus on Central America and the Caribbean.

“In an unpredictable economic landscape, IFC directed significant financial resources into regions where we could do the most good,” said Lars Thunell, IFC’s Executive Vice President and CEO.

“We mobilized capital to address the major development challenges of our time. We leveraged our global expertise, developing innovative products and services to help our clients succeed. We catalyzed investment in emerging markets, demonstrating to investors that development and commercial success can go hand in hand in these markets.”

To help countries during the economic recovery, the WBG’s Multilateral Investment Guarantee Agency (MIGA) in fiscal year 2010 provided $18.1 million in guarantees for financial sector projects in the Latin American and Caribbean region.

In addition, last year MIGA signed a Memorandum of Understanding (MoU) with the Central American Bank for Economic Integration (CABEI) aimed at promoting foreign direct investment in Central American countries by jointly providing non-commercial risk guarantees for projects in a variety of sectors, mostly through coinsurance arrangements.

“MIGA remains committed to helping the economies of the Latin American and Caribbean region continue on a path of growth by supporting investments that create jobs, lending services to the real economy, and infrastructure,” says MIGA’s Executive Vice President, Izumi Kobayashi. “Countries in the region are also continuing to become major sources of outward investment, and we stand ready to support such developmentally-beneficial activity across borders.”

Several Latam countries were able to conduct countercyclical policies, particularly on the monetary front, for the first time in decades. The effectiveness of these policies was complemented and enhanced by the sizeable, flexible, and timely provision of liquidity and budget-support financing from multilateral institutions.

By early 2010, the region’s international reserves were more than three times what they had been five years earlier. Public sector debt remained manageable, averaging 30% of GDP, and the region underwent no banking crisis, despite the sub-prime-driven global turmoil.

The current pattern of global recovery has favoured the region so far. Countercyclical policies have supported domestic demand in the larger countries and external demand from fast-growing emerging economies, especially China’s, has boosted exports and terms of trade for Latam net commodity exporters.
 

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1 Hoytred (#) Jul 04th, 2010 - 06:45 am Report abuse
Good to know that the developing nations of South America are 'standing on their own two feet' :-)
2 briton (#) Jul 04th, 2010 - 10:04 pm Report abuse
to think of all that money going to waste, as we are in a recesion and cutting back on everything, then great britian should have the money,
we would at least spend it wisely, ?
3 Forgetit87 (#) Jul 05th, 2010 - 03:12 am Report abuse
It hurts my balls that people attribute Brazil's growth to 'commodities exports'. Brazil is not dependent on exports. As a matter of fact it is approaching deficit in its international trade due to an overappreciated currency. (Chile, by the way, is highly dependent on commodity exports and it is not growing very much this year.) Brazil's growth is due more to infrastructure investment and the enlargement of its middle-class. Its reported growth rate - 6.5% - is also incorrect. The correct is 7.3.%.

Briton,

A country in recession is much better by not borrowing from WTO (or the IMF, for that matter). But that Europe believes the solution to its problems is budget cutting, is regrettable.
4 jerry (#) Jul 05th, 2010 - 04:21 am Report abuse
The real shame is that governments should realize that spend - spend - spend can never be good; the results are proving this.
5 Billy Hayes (#) Jul 05th, 2010 - 04:45 am Report abuse
spent, spent in the people is always good.

social cut means recession.

UK´s war & defense budget is half deficit; but Cameron will cut in working class & pensioners.
6 Hoytred (#) Jul 05th, 2010 - 06:26 am Report abuse
Well we have enemies Billy, what do you expect?
7 harrier61 (#) Jul 05th, 2010 - 11:40 am Report abuse
Thing is, Billy boy, a large proportion of the British people are prepared to accept some cuts in order to have appropriate military forces.

Try to remember that when there are two 65,000 ton British aircraft carriers somewhere off your coast. It won't be 4 Eurofighter Typhoons then, it will be 80 plus combat aircraft.
8 jorge! (#) Jul 05th, 2010 - 05:30 pm Report abuse
....“Well we have enemies Billy, what do you expect?”....

- That's your fault! Stop stealing and invading lands, resources and give those territories back to their true owners! that way you won't have enemies anymore!
9 harrier61 (#) Jul 05th, 2010 - 09:33 pm Report abuse
jorge! Don't be silly. You aren't old enough for this discussion. Off to bed now, and don't forget to take your pee-pee pot with you. And hope no-one steals it in the night!
10 briton (#) Jul 06th, 2010 - 12:15 am Report abuse
sadly my friend you may well be right, everybody has to suffer years of goverment failers and incompetence, and once again its always the poor that suffer,
11 Hoytred (#) Jul 06th, 2010 - 12:55 am Report abuse
We haven't stolen anything jorgy- boy. It belongs to us and we make full use of it ... haven't you noticed?
12 Billy Hayes (#) Jul 06th, 2010 - 03:41 am Report abuse
nearly, times of two carriers will be finished.

trident is toast.

oil is not viable in operation zone.
13 briton (#) Jul 06th, 2010 - 02:05 pm Report abuse
thats why we are the best mate, our carriers are not reliant on fuel as such, they have electric motors, sea water creates power,
soon we may all go electric, ecept argentina, they are still sorting through the rocks
14 harrier61 (#) Jul 10th, 2010 - 06:36 pm Report abuse
Hey, Billy. “nearly, times of two carriers will be finished.” Que?

No, Trident MAKES toast.

More British companies coming in.

Think on!

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