IDB introduce credit line
Published:Wednesday | May 28, 2008 | 3:48 PM
The Inter-American Development Bank (IDB) has announced the creation of a US$500 million credit line to ease the impact of rising food prices on countries in Latin America and the Caribbean.
The credit line is to be approved shortly by the executive board of the IDB.
The bank said it will include mechanisms to ensure fast disbursement and countries will be able to use the funds to strengthen their social protection networks and improve agricultural productivity.
Between January 2006 and March of this year, worldwide food prices reportedly jumped 68 percent on average.
The rise has been especially steep for some basic food items such as rice the price of which has doubled and corn with a 128 percent price increase.
IBD President Luis Alberto Moreno said while the full impact of external prices will take some time to filter into domestic markets, the region has an opportunity to implement measures to protect the most vulnerable and encourage greater domestic food production.