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Inter-American Development Bank |
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The Inter-American Development Bank was established in Washington, D.C., United States, in 1959. Its headquarters’ is in Washington D.C. The Inter-American Development Bank or IDB or IADB was established to support Latin American and Caribbean economic and social development and regional integration with the help of the respective governments and government agencies. Luis Alberto Moreno is the current President of the Bank who is a Colombian diplomat. He succeeded Enrique V. Iglesias on July 27, 2005.
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The IDB has four official languages: English, French, Portuguese, and Spanish. The official names of the other three languages are
- French: Banque Interaméricaine de Développement;
- Portuguese: Banco Interamericano de Desenvolvimento;
- Spanish: Banco Interamericano de Desarrollo.
In all three of the other languages, the Bank uses the short form "BID".
47 sovereign states of America are the members of the Inter-American Development Bank. All of them are its shareholders and owners. Of these states 26 are borrowers, and 21 do not borrow from the Bank. The non-borrower states are Austria, Belgium, Switzerland, U.K, Japan, Italy, USA, Sweden, Canada, Portugal, Israel, France, Korea, Netherlands, Norway, Denmark and Finland.
The IDB provides loans to the governments of its borrowing member countries at standard commercial rates of interest. Borrower member countries will repay loans to the IDB first before repaying other lenders such as commercial banks.
The IDB raises funds by selling bonds to institutional investors at standard commercial rates of interest. These funds are then used to give loans to the borrowers. The bank also generates capital from the subscriptions paid by the Bank's 47 member countries, and the sum of the callable capital subscriptions pledged by the Bank's 21 non-borrowing member countries. Together these constitute the Bank's ordinary capital, some US$101bn. The non-borrower member states are the wealthiest nations of the world. Therefore they guarantees the bonds sold by the Inter-American Development Bank.
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