Introduction to the
Inter-American
Development Bank Group
Relation with
IDB-KOREA and LAC
Inter-American Development Bank Office in Asia
Presented By Minho Yoon, PhD
The 3rd OECD World Forumon Statistics, Knowledge and Policy
October 27-30, 2009
Busan, Korea
• The IDB is the main source of multilateral financing and expertise for
sustainable economic, social and institutional development in Latin
America and the Caribbean(LAC).
• 26 Borrowing member and 22 non-borrowing member countries
• More than $11.2 billion in approved lending, guarantees and grants in 2008
• $12-18 billion will be approvals in 2009
• Backed by a AAA/Aaa rating by both Standard & Poors and Moody’s
IDB is a stable source of external financing for Latin America and the Caribbean
Founded in 1959 :ADB(1966)/AFDB(1964)/EBRD(1991)
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48 Members
Austria
Belgium
Canada
China:2009
Croatia
Denmark
Finland
France
Germany
Israel
Italy
Japan:1976
Korea:2005
Netherlands
Norway
Portugal
Spain
Slovenia
Sweden
Switzerland
UK
USA
Argentina
Bahamas
Barbados
Belize
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Guyana
Haiti
Honduras
Jamaica
Mexico
Nicaragua
Panama
Paraguay
Peru
Suriname
Trinidad & Tobago
Uruguay
Venezuela
Non-Borrowing Member
Countries (22)
Borrowing Member
Countries (26)
• The IDB provides solutions to development challenges in 26
countries of Latin America and the Caribbean, partnering with
governments, companies and civil society organizations
• The IDB lends money and provides grants. It also offers research,
advice and technical assistance to improve key areas like
education, poverty reduction and agriculture. Our clients range from
central governments to city authorities and small businesses
• The Bank also seeks to take a lead role on cross-border issues like
trade, infrastructure and energy
IDB Provides a Wide Range of Solutions
IDB has the largest exposure in Latin America and
Caribbean of any development bank
• Total IDB Group lending exposure to LAC: $52.1
billion
• Sovereign Guarantee Lending: $48.6 billion to 26
countries
• Non-Sovereign Guarantee (NSG) Lending and
Guarantee Exposure: $3.5 billion
• NSG clients include both private companies and
sub-national entities without a Sovereign
Guarantee
IDB has four Non-Sovereign Guaranteed departments
• Structured and Corporate Finance (SCF): Works with
the larger corporations and financial institutions, as well
as project finance
• Inter-American Investment Corporation (IIC): Targets
small and medium-sized enterprises, primarily through
financial institutions: Founded 1989
• Multilateral Investment Fund (MIF): Targets primarily
micro-entrepreneurs and micro-finance institutions: Founded 1992
• Opportunities for the Majority (OMJ): Promotes
innovative projects aimed at the Bottom of the Pyramid
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The IDB has Two Sister Entities: IIC & MIF
IDB Group
MIFIIC
IDB
IDB-Korea and LAC
• Established in 1995
• Cover the three members of the Bank in Asia:
Japan, Korea and China
• Support Activities of members of IDB Group in Asia
-Promote trade and investment from Asia to LAC,
-Identify financing opportunities for IDB Group,
-Support resource mobilization
-Disseminate opportunities in IDB-financed projects,
-Strengthen strategic alliances between the IDB Group
and Asian member countries and key partners,
-Support the implementation of institutional
commitments particularly with respect to aid alignment,
harmonization and development effectiveness,
-Disseminate IDB group-produced knowledge and
priorities.
Office in Asia
Welcoming a New Member Country:
The Republic of Korea in 2005
• The Republic of Korea formally joined the IDB group on March 16, 2005 as the Bank’s 47th member country and its second Asian member since Japan joined in 1976.
• Korea’s entry brings the IDB not only new resources but new ideas on how to approach development issues, based on the Asian experience of investment in education, science and technology and small business promotion.
• Following the visit of President Moreno, another mission visited the Republic of Korea in December, consisting of the relevant staff of headquarter and the Office.
KOREAN TRUST FUNDS AT THE IDB-IIC
• Korea Poverty Reduction Fund (KPR)
• Knowledge Partnership Korea Fund for
Technology and Innovation (KPK)
• Korea IIC-SME Development Trust Fund(FINPYME)
• Non-reimbursable technical cooperation projects
• Fully untied trust funds. Nationals of all IDB member
countries are eligible to become consultants
• All IDB borrowing member countries are eligible as
beneficiaries
Background
Korea joined the IDB Group in March, 2005
Committed US$ 200 million
Poverty Reduction Fund – US$50 million
Technology and Innovation Fund – US$ 50 million
IIC SME Fund – US$ 40 million
MIF contribution – US$ 60 million
Signed Agreement for Trust Funds-July,2005
www.iadb.org/ar/tec
Project Approvals by Korea Poverty Reduction Fund
Project Approvals by Knowledge Partnership Korea Fund for Technology and Innovation
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Country SectorApproval
DateAmount(In US$)
1DominicaRepublic
Modernization ofthe State
2006.8.8 $98,000
2 Regional Agriculture 2006.12.6 $99,920
Total 2006 2 Projects $197,920
1 Regional Science & Technology 2007.1.8 $27,0002 Costa Rica Science & Technology 2007.1.30 $45,0003 Regional Science & Technology 2007.2.8 $98,8004 Uruguay Science & Technology 2007.2.15 $265,6005 Mexico Science & Technology 2007.6.14 $272,400
Regional Science & Technology 2007.6.25 $74,7121 Regional Trade 2007.8.14 $500,0002 Honduras IT and Telecommunications2007.8.31 $374,8003 Columbia Capital Market 2007.9.11 $99,6504 Honduras IT and Telecommunications2007.11.7 $280,000
5 PanamaPrivate SectorDevelopment
2007.11.16 $500,000
6 Regional Modernization of the State2007.11.29 $116,7127 Regional Science & Technology 2007.11.30 $89,0008 Peru Science & Technology 2007.12.5 $354,600
9 Brazil Modernization of the State2007.12.19 $98,760
Total 2007 15 Projects $3,197,034
1 Columbia Energy 2008.1.16 $500,000
2DominicaRepublic
IT and Telecommunications2008.1.25 $216,000
3 Chile Education 2008.1.29 $56,500
4 JmaicaPrivate SectorDevelopment
2008.2.6 $99,999
5 Panama Science & Technology 2008.3.13 $150,0006 Argentina Agriculture 2008.3.14 $119,8507 Chile IT and Telecommunications2008.3.14 $300,0008 Peru Capital Market 2008.4.14 $145,1599 Peru Social Investment 2008.5.6 $144,000
10 Mexico Agriculture 2008.5.8 $100,00011 Regional Modernization of the State2008.5.8 $70,08012 Argentina Agriculture 2008.5.14 $76,50013 Regional IT and Telecommunications2008.6.19 $110,00014 Peru Science & Technology 2008.6.19 $280,00015 Regional IT and Telecommunications2008.6.27 $500,00016 Regional Education 2008.7.30 $500,00017 Regional Transportation 2008.8.7 $98,500
18DominicaRepublic
Science & Technology 2008.9.17 $360,535
19 Brazil Education 2008.9.19 $496,10720 Panama IT and Telecommunications2008.10.2 $277,00021 Regional Education 2008.10.24 $75,00022 Regional Trade 2008.12.5 $136,000
23 Guatemala Capital Market 2008.12.12 $495,000
Total 2008 23 Projects $5,306,230
2006-2008Total
40 Total Projects $8,701,184
Project Approvals by Korea-IIC SME Development Trust Fund
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Country SectorApproval
DateAmount(In US$)
1 Brazil Mining 2006.6.16 $75,0002 Regional Multisector 2006.6.22 $50,0003 Regional Multisector 2006.7.17 $450,0004 Regional Multisector 2006.7.25 $65,000
5 Paraguay Agri-business 2006.12.1 $48,000
Total 2006 5 Projects $688,000
1 El Salvador General Manufacturing 2007.1.30 $70,0002 Nicaragua Textile 2007.4.5 $20,0003 Venezuela Local Capital Markets 2007.4.9 $147,0004 Peru Local Capital Markets 2007.4.18 $82,9505 Panama Energy 2007.4.20 $88,0006 Argentina Local Capital Markets 2007.5.8 $52,0007 Paraguay Legal 2007.5.30 $10,0008 Regional Multisector 2007.6.8 $50,000
9CaribbeanCountries
Multisector 2007.8.9 $75,000
10 Regional Multisector 2007.8.15 $60,000
11CentralAmerica
Energy 2007.9.14 $170,000
12 Ecuador Wood Product 2007.12.10 $85,00013 Regional Multisector 2007.12.12 $160,000
14 Regional Multisector 2007.12.12 $425,000
Total 2007 14 Projects $1,494,950
1 Columbia Energy 2008.1.29 $45,0002 Regional Multisector 2008.2.1 $80,0003 Jamaica Multisector 2008.5.21 $40,0004 Regional Multisector 2008.7.17 $495,0005 Chile Energy 2008.8.6 $81,5006 Columbia Energy 2008.8.6 $25,0007 Regional Multisector 2008.9.15 $85,0008 Regional Multisector 2008.12.2 $350,0009 Regional Multisector 2008.12.2 $320,000
10 Regional Multisector 2008.12.18 $500,000
Total 2008 10 Projects $2,021,500
2006-2008Total
29 Total Projects $4,204,450
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Korea and IDB Strengthening Relations in 2009
Korean Exports to Latin America and Caribbean
Exports to LAC countries increased by 29% from 2007 to 2008
No change to Top 6 LAC export countries who represent 76% & 83%
Exports to LAC countries increasingly important to Korea as exports to LAC
countries growing faster than growth of overall exports
Rank Country 2007
% of Total
LAC % of Total Rank Country 2008
% of Total
LAC % of Total
Increase /
Decrease
1 Mexico 7,482 29% 2.02% 1 Mexico 9,089 27% 2.15% 21%
2 Brazil 3,487 14% 0.94% 2 Panama 6,463 19% 1.53% 85%
3 Panama 3,145 12% 0.85% 3 Brazil 5,925 18% 1.40% 88%
4 Chile 3,115 12% 0.84% 4 Chile 3,031 9% 0.72% -3%
5 Bahamas 1,308 5% 0.35% 5 Bahamas 2,069 6% 0.49% 58%
6 Colombia 1,121 4% 0.30% 6 Colombia 1,090 3% 0.26% -3%
7 Venezuela 1,233 5% 0.33% 7 Bermuda 789 2% 0.19% N/ A
8 Argent ina 489 2% 0.13% 8 Venezuela 728 2% 0.17% -41%
9 Peru 466 2% 0.13% 9 Peru 720 2% 0.17% 55%
10 Ecuador 429 2% 0.12% 10 Ecuador 626 2% 0.15% 46%
22,275 86% 6.00% 30,530 92% 7.23% 37.06%
25,781 100% 6.95% 33,267 100% 7.88% 29.04%
371,000 100.00% 422,000 100.00% 13.75%Total Global Exports Total Global Exports
Top Ten LAC Korean Export Countries (millions)
Total Top 10
Total LAC Exports
Total Top 10
Total LAC Exports
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www.iic.int/
www.iadb.org/asia
More Information ?
Business Information in Office in Asia
Inter-American Development Bank
Office in Asia
Fukoku Semei Building 16F
2-2-2 Uchisaiwaicho, Chiyoda-Ku
Tokyo, 100-0011 Japan
Tel : 81-3-3591-0461
Fax: 81-3-3591-0641
Business Research and Information Consultant
Contact: Min-Ho Yoon
E-mail: [email protected]
http://www.iadb.org/asia