Shaw praises IDB for record year of regional assistance

Jamaica's Finance Minister, Audley Shaw, says the Caribbean remains committed to being a vibrant partner in the Inter-American Development Bank (IDB), notwithstanding its weakened economic position.

The region continues to trail its Latin American neighbours, both in terms of growth rates and capital inflows, which Shaw attributed to "high levels of public debt" that allow little space for fiscal stimulus.

Speaking on behalf of the English-speaking Caribbean, at the 52nd Annual IDB Board of Governors meeting's second plenary session in Calgary, Canada, on Monday, Shaw reiterated the region's position that the multilaterals should shift policy towards the Caribbean from a partnership for stability to a partnership for growth.

The Jamaican official commended IDB affiliates - Inter-American Investment Corporation (IIC) and the Multilateral Investment Fund (MIF) - for their increased activity in the region. He also cited the launch of FINPYME technical assistance and export programmes in Jamaica, Guyana, Barbados and The Bahamas aimed at small and medium-sized enterprises, and the record levels of capital being mobilised by the IDB and for mounting its biggest ever countercyclical effort in response to the global economic crisis.

Of a record US$914 million disbursed to Caribbean countries in 2010, Jamaica got the lion's share of US$630 million.

Overall, the IDB approved a record US$12.6 billion of loans and disbursed US$10.8 billion to Latin American and Caribbean countries last year, the multilateral agency reported in Canada this week.

The bank is the largest source of development financing for Latin American and Caribbean government agencies and state corporations.

On Monday, the IDB and the Export-Import Bank of China signed a letter of intent to establish an infrastructure investment mechanism, to finance public and private sector projects in IDB borrowing member countries.

The two institutions also signed a memorandum of understanding that marks an important first step to set up an investment fund, to forge sustainable economic partnerships between China, Latin America and the Caribbean, by investing in key sectors of interest to both regions.

Signatories to both agreements were Executive Vice-President of China Eximbank Liu Liange and IDB President Luis Alberto Moreno.

The IDB also announced Monday that it would manage a regional infrastructure fund seeded by Mexico, United States and Canada. The fund, which already has US$13 million in commitments, is expected to grow to US$20 million as other donors contribute.

- JIS