Update Samana Airports/IDB Guarantee
IDB SUPPORT FOR PRIVATE SECTOR IN LATIN AMERICA GROWS
Bank projects attract $13 billion from equity and debt institutional investors
The Inter-American Development Bank?s support for the private sector in Latin America and the Caribbean continues to grow, despite the recent financial volatility of some countries and an economic slowdown for the region.
By the end of 2002 the Bank?s active portfolio of private sector projects, financed without government guarantees, totaled $2.45 billion from ordinary capital and $3.4 billion in syndicated loans. The total cost of the projects was $13 billion. Every $1 invested by the IDB from ordinary capital in private sector projects helped mobilize $5.42 from debt and equity investors.
The percentage of lending directly to the private sector without government guarantees increased to 3.78 percent of the Bank?s portfolio in 2002, compared with 2.7 percent in 2001.
Of the 52 active private sector projects, those located in smaller and more vulnerable markets received $289 million in financing from the Bank?s ordinary capital and $1.1 billion in syndicated loans.
During 2002 the IDB approved five loans for private sector projects and two guarantees for a total of $316.4 million and two syndicated loans totaling $70.5 million. Among the projects were the first Private Sector Department project for Guatemala, a $25 million loan for the electricity sector, and the first in the airports sector, a guarantee of $150 million for the Dominican Republic.