Bolivia’s internal situation has led the country to the depletion of its international reserves. In this context, President Luis Arce has indicated that without new financing, it could default.

The main creditors of the South American nation, mired in a political, social, and energy crisis, are the Inter-American Development Bank (IDB), the Development Bank of Latin America and the Caribbean (CAF), the World Bank (WB), and China.

Arce indicated that if parliamentary approval of the international loans it requested from multilateral institutions is not achieved, the country would default.

The lack of foreign currency in Bolivia is critical. Added to this is the electricity crisis and clashes with the political opposition, accused by Arce of blocking international financing.

The president has expressed his concern: “We are trying not to default. We have every intention of paying our debt, but what if we don’t have the resources?”

Currently, “there are $1.8 billion in requests for international funds that have not yet been discussed by legislators. The country needs $2.6 billion by December for fuel imports and foreign debt payments.”

M.Pino

Source: infobae

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A recent agreement between the Inter-American Development Bank (IDB) and the Central Bank of Paraguay (BCP) will allow for sustained progress toward the modernization of the country’s financial system through the adoption of International Financial Reporting Standards (IFRS).

The South American country signed this agreement with the goal of “strengthening financial transparency, aligning the accounting practices of the Paraguayan banking system with international standards, and facilitating integration with global markets.”

The project, with an estimated duration of 18 to 24 months, includes a technical assessment to identify accounting, regulatory, and technological gaps. It also includes training for strategic staff, public-private discuss tables, and simulations of the impact on financial statements.

Ultimately, the project will be able to design a strategic roadmap for a gradual and sustainable transition to IFRS, an initiative framed within the IDB’s Capacity Building, Asset Management, and Advisory Services (CAsA) Program, effective July 2024, which supports central banks in Latin America and the Caribbean through technical assistance and institutional strengthening.

The Central Bank of Paraguay will be responsible for developing two complementary projects: “the adoption of IFRS, led by the Superintendency of Banks, and the implementation of a Risk-Based Supervision approach, led by the Superintendency of Securities,” aimed at “maximizing synergies in modernizing the regulatory framework and strengthening the technical supervisory capacity of the financial system.”

M.Pino

Source: finanzasdigital

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La entrada Paraguay receives IDB support in financial modernization process apareció primero en Bitfinance.

The Inter-American Development Bank signed the Alliance for Security, Justice and Development with Argentina, Bahamas, Barbados, Belize, Brazil, Chile, Costa Rica, Dominican Republic, Ecuador, Guatemala, Guyana, Honduras, Jamaica, Panama, Paraguay, Peru, Suriname and Uruguay.

The objective of this regional alliance, open to new participants, is to design concrete policies and actions to fight organized crime.

“The Alliance, in which Ecuador will hold the first pro tempore presidency, will have a steering committee, a technical secretariat in charge of the IDB and three working groups that will promote policies and concrete actions and define metrics.”

The working groups will focus on the three pillars of the initiative: “protecting vulnerable populations, strengthening security and justice institutions, and reducing illegal financial markets and flows.”

The Alliance for Security, Justice and Development will have the support of at least 11 organizations, such as the Organization of American States (OAS), the International Criminal Police Organization (Interpol) and the World Bank (WB).

M.Pino

Source: cnnespanol

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IDB Invest, the investment arm of the Inter-American Development Bank, will work together with Colabora Capital Partners (CCP) to develop a new platform aimed at managing investments in Latin America and the Caribbean.

According to the IDB, this initiative will allow institutional investors to get closer to the vast untapped opportunities in the region. On the other hand, it will boost the growth of private capital markets.

The platform is designed to “catalyze the influx of private capital in Latin America and the Caribbean, bringing institutional investors closer to the vast untapped opportunities in the region. By aligning with pension funds, sovereign wealth funds and development institutions, this platform will create a new wave of investment solutions, helping to close the financing gap for key sectors.”

IDB Invest will make the necessary efforts to help boost substantial capital flows with the purpose of “fostering long-term growth and sustainable development throughout the region.”

In this regard, the director of Financial Products and Services at IDB Invest, Fabio José Fagundes, said: “We are excited to partner with Colabora Capital Partners on this investment management platform. This initiative addresses the growing demand for capital in Latin America and the Caribbean.”

Colin Curvey, founder of CCP, expressed his satisfaction at working with IDB Invest on this important and interesting initiative. “With its relationships, experience and unmatched presence throughout the region, IDB Invest is ideally positioned to anchor a new investment platform that will bring global institutional investors closer to the impressive set of opportunities in the region,” he stressed.

M.Pino

Source: americaeconomia

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Through the Executive Branch, Uruguay accepted a $200 million loan from the Inter-American Development Bank (IDB) to face the climate crisis and promote the energy transition.

The loan, which will be amortized over 20 years, will allow the country to advance in key areas such as “the decarbonization of transport and supporting green hydrogen projects.”

Uruguay will have a three-year period to withdraw the funds, with the possibility of renewal for three additional years.

“The Executive Branch resolution designated the Minister of Economy, Azucena Arbeleche, and the Undersecretary, Alejandro Irastorza, to present the corresponding documentation to the IDB to obtain the credit.”

Other areas that will benefit from this IDB loan are the “development of green hydrogen with private participation through renewable energy resources and strengthening the ecosystem of innovation, capacity development, gender, diversity and financing for climate action.”

There are some conditions that the country must meet in terms of charging stations for electric vehicles, a roadmap for green hydrogen by the Ministry of Industry as well as a National Plan for Adaptation of the Energy Sector.

M.Pino

Source: elobservador

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The Inter-American Development Bank (IDB) will create the Amazonía for All index fund, with the Brazilian banks Banco do Brasil, Caixa Econômica Federal and the National Bank for Economic and Social Development, to finance sustainable projects in the Amazon.

The fund, called Amazonía for All, “will be traded on the Brazilian Stock Exchange for 100 reais (about $18), and the initial estimate is that the ETF will raise between 1,000 and 2,000 million reais (between 180 and 360 million dollars)”, according to close sources.

Ilan Goldfajn, president of the IDB, stressed the importance not only for the region but for the world of the preservation of the Amazon. He added that with the index fund, the investment will be achieved “in sustainable exploitation projects of the Amazon rainforest, which will be selected from now on.”

More details about this initiative are planned to be revealed before the COP16 on Biodiversity, which will take place between October 21 and November 1 in Cali, Colombia.

The IDB president indicated that the idea of ​​creating this fund was presented by the president of the BNDES, Aloizio Mercadante, considering the need for resources to finance the preservation of the biome. “They cannot only be public resources. No matter how hard we try, it won’t work. We need to attract private resources,” he said.

M.Pino

Source: xinhuanet

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The Inter-American Development Bank (IDB) recently presented a report estimating that the growth of fintechs in Latin America and the Caribbean, in six years, has been 340 %, with Mexico, Colombia and Brazil at the top of the segment.

“At the end of 2023, the region’s fintech platforms reached a record of 3,069 companies distributed in 26 countries. Compared to 2017, this growth represents an increase of more than 340% in the number of fintechs in the region,” indicates the IDB.

Brazil, Mexico and Colombia together host 57 % of the total fintechs in Latin America, mainly in the “payments and remittances (21 % of the total companies in the region), loans (19 %) and business finance management” segments. (13 %).”

The growth is the result of efforts in these countries to serve underbanked people and companies or those that are not yet banked, demonstrating a marked interest in financial inclusion in the region.

According to the report, by 2023, “Brazil and Mexico maintained their leadership position, hosting 722 (23.53 % of the total companies) and 618 (20.14 %) fintech ventures, respectively,” totaling almost 44 % of total fintech companies in Latin America and the Caribbean. They are followed by Colombia with 409 fintech companies (13.33 %), Argentina with 312 (10.17 %) and Chile with 305 (9.94 %), for a total between them of 33.44 %. So “the five countries concentrate 77.1 % of the total fintech companies in the region.”

Other countries stand out, with less fintech development, such as Peru (5.31 %), Ecuador (3.03 %), Dominican Republic (2.12 %), Uruguay (1.69 %), Costa Rica (1.56 %). and Guatemala (1.11 %), which represent 14.8 % of the total. They are followed by Panama, Bahamas, Paraguay, El Salvador, Bolivia, Jamaica, Honduras, Venezuela, Belize, Barbados, Nicaragua, Guyana, Haiti, Trinidad and Tobago and Suriname, which add 8.1 % to the sector.

The progress of the countries of the region in the fintech segment is based on their interest in responding to the needs of the unbanked, strengthening financial inclusion, promoting the diversification of financing sources, and advancing in regulation and innovation. , with firm steps in “regulatory sandboxes and technological supervision (Suptech), thus promoting the development of the fintech ecosystem and the adoption of digital financial services.”

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Source: mobiletime

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Digital payments have experienced rapid growth in Central America and the Caribbean, according to the recent Inter-American Development Bank (IDB) report titled “Towards Greater Financial Inclusion for Development.”

The IDB published this Monday that “the percentage of adults in this region who own mobile money accounts has doubled, going from 4 % to 8 % between 2017 and 2021.”

According to the agency, the use of digital platforms facilitates savings, provides users with security and speed, in addition to reducing costs associated with domestic payments and international remittances.

Despite this increase in the use of digital channels, the IDB points out that the region still “must close gaps with other parts of the world both in the adoption of digital financial tools and in financial inclusion policies.”

Tomás Bermúdez, general manager of the IDB for the region of Central America, Mexico, Panama, the Dominican Republic and Haiti, cited in the report, highlights the need to promote policies that allow greater “availability and access to financial services such as credit, savings, payment of services.”

Digital payments constitute a key factor in electronic commerce in Latin America and the Caribbean. “In 2020, the value of transactions of this type exceeded 38 billion US dollars in the region and is expected to exceed 100 billion in 2025.”

M.Pino

Source: swissinfo

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The Inter-American Development Bank, IDB, indicated this Monday that Latin America’s public debt has been reduced and is close to reaching pre-pandemic levels.

According to the organization, public debt has been reduced in the region thanks to the reforms and fiscal adjustments applied.

According to the IDB, “public debt experienced a decrease of 11 percentage points in relation to the Gross Domestic Product (GDP), going from 71 % in 2020, to 66 % in 2021, 62 % in 2022 and 60 % in 2023.”

Although it recommends that countries continue implementing reforms, the IDB estimates that the increase in GDP this year will be 1.6 % and that in 2025 it will rebound to 2 %.

In general terms, the organization points out that the countries of Latin America and the Caribbean have demonstrated “unexpected strength” last year. However, they should not lose sight of factors that may influence the increase in debt, such as the El Niño phenomenon, since it could “lead to a 3% increase in debt as a percentage of GDP in three years.”

The IDB emphasizes the importance of governments working to develop “quality education, encourage small businesses, facilitate access to global markets, attract foreign direct investment and improve the credit market.”

M.Pino

Source: bancaynegocios

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Within the framework of the first half of 2023, exports of goods from Latin America and the Caribbean experienced a 2.7 % decrease compared to the same period of the previous year, according to the report ‘Monitor of Trade and Integration’ of the Inter-American Development Bank (IDB). This contraction is mainly attributed to the fall in prices. (-4.7 %) and moderation in the growth of exported quantities (2.9 %).

The IDB warns that the latest indicators point to a possible continuation of this downward trend in the coming months. Factors such as rising geopolitical conflicts, restrictive monetary policies and the slowdown in global growth following the post-pandemic recovery are contributing to these results.

The most notable ‘shocks’ that have negatively affected the region include Russia’s invasion of Ukraine, persistent inflation, and tightening monetary policy in advanced countries. In addition, the report highlights the urgency of addressing crucial challenges such as food security and climate change, which are likely to impact regional trade performance in the coming years.

Adverse climatic events have also had a significant impact on economic activity, particularly in the agricultural sectors of some countries in the region.

Despite a transitory export boost linked to China’s economic acceleration in early 2023, this effect faded over the year, revealing structural challenges that will have repercussions on the global economy and trade.

The report highlights that, while goods exports from Latin America and the Caribbean have contracted, the contraction is less pronounced than that of global trade as a whole. Sales of services also showed a slight slowdown.

As for the regions, the decrease in intraregional sales (-0.6 %) was smaller than in extraregional sales (-2.2 %) during the first half of 2023. The volume of shipments increased, mainly driven by Brazil (0.7 %) and Mexico (3.9 %), while several countries experienced notable contractions, such as Colombia (-14 %) and Ecuador (-10.1 %).

K. Tovar

Source: Bancaynegocios

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