World Bank funnels US$18b to LAC
Published:Wednesday | July 14, 2010 | 12:00 AM
The World Bank Group committed US$17.9 billion to regional economies in the past year, a less than five per cent annual increase in funding for countries attempting to recover from the global downturn.
The Latin American and Caribbean region (LAC) is expected to post growth of 4.5 per cent this year, led by Brazil, whose economy is likely to see growth of 6.5 per cent as commodities exports climb.
The Caribbean as a region is also expected to post modest growth of 3.2 per cent — a better outcome than last year's 2.0 per cent — but only when Haiti is excluded from the projections.
Jamaica is holding to forecasts of 0.5-0.6 per cent growth.
Last fiscal year, ending June 2009, the World Bank invested US$17.1 billion in LAC in loans and grants.
Its commitments over the fiscal period July 2009 to June 2010 ramps that up by 4.7 per cent.
The majority of the 2010 funds, 79.3 per cent, are in the form of loans — amounting to US$14.2 billion of the US$17.9 billion.
Most of the loan funds are destined for Colombia, Mexico and Brazil.
Haiti gets US$250 million of assistance, of which US$39 million is in the form of debt cancellation.
The bank's private-funding arm, International Finance Corporation, is investing US$3.9 billion in companies and projects, a portion of which is pooled with commercial funds in syndicated loans.
This will serve to mobilise private sector credit in the region, the World Bank said.