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Brazil calls on IDB to speed the planned 70 billion US dollars capitalization

Tuesday, March 29th 2011 - 17:54 UTC
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Planning Minister Miriam Belchior Planning Minister Miriam Belchior

Brazil's Planning Minister Miriam Belchior pressed the Inter-American Development Bank, IDB, to move quickly with its planned 70 billion US dollars capitalization to expand the reach of projects in Latin America.

The bank, which last year approved the capital increase, is counting on the additional funds to double annual lending to 12 billion USD.

Brazil has received or will receive a total of 13.3 billion from the IDB, including 1 billion passed on to Brazil's own development bank BNDES, for projects such as building roads and cleaning up rivers.

“The current dimensions of the IDB have become too small for the current needs of our region,” Belchior said during the bank's annual meeting in Calgary, Canada, according to the text of prepared comments.

“Because of this, the approved capital increase, which was already smaller than necessary, shouldn't be delayed any longer, under penalty of--involuntarily--compromising the institution's relevance.”

The bank's vice president for private sector operations, Steven Puig, said over the weekend he is “confident” the bank will be able to raise the 70 billion USD and added that the IDB doesn't see the need to resort to a “plan B” in case the plans fall through.

The bank expects lending to the private sector to accompany the overall increase in lending, with loans topping 3 billion by 2015 from 1.4 billion in 2010.

Categories: Economy, Brazil.

Top Comments

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  • GeoffWard

    Good points from new Planning Minister.

    IDB aid for infrastructure is certainly needed, but so is MUCH MORE disbursement of Brasil's own cash to fund Planning, Infrastructure, Water Management, Energy distribution, etc, etc.

    Not only might the IDB allocation be slow in coming and inadequate to the task, but Brasil's own deployment has been woefully and similarly inadequate.

    In spite of this, 'good on the new minister'. Watch her carefully and see how much weight Dilma throws behind her.

    Mar 30th, 2011 - 08:44 pm 0
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