EL GRUPO DEL BID

DOING BUSINESS WITH THE IDB: AN INTRODUCTION TO THE IDB’S PRIVATE SECTOR OPERATIONS

Gustavo ArnavatU.S. Executive DirectorInter-American Development BankCompetitiveness Forum SurinameFebruary 7-8, 2012

THE IDB GROUP

• 26 Borrowing Members• 22 Non-Borrowing Members

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THE IDB GROUPTHE IDB GROUPTHE IDB GROUPTHE IDB GROUP

United States30%

Canada4%

Japan, China and South Korea

5%

Latin America and the Carribean

50.01%

Europe and Israel11%

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IDB MEMBER CAPITAL INSCRIPTION AND IDB MEMBER CAPITAL INSCRIPTION AND VOTING POWERVOTING POWER

IDB MEMBER CAPITAL INSCRIPTION AND IDB MEMBER CAPITAL INSCRIPTION AND VOTING POWERVOTING POWER

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BOARD OF EXECUTIVE DIRECTORSBOARD OF EXECUTIVE DIRECTORSBOARD OF EXECUTIVE DIRECTORSBOARD OF EXECUTIVE DIRECTORS

14 Chairs at the Board of Executive Directors

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AGREEMENT ESTABLISHING THE INTER-AMERICAN DEVELOPMENT BANK

ARTICLE I PURPOSE AND FUNCTIONS

SECTION 1. PURPOSE THE PURPOSE OF THE BANK SHALL BE TO CONTRIBUTE TO THE ACCELERATION OF THE PROCESS OF ECONOMIC AND SOCIAL DEVELOPMENT OF THE REGIONAL DEVELOPING MEMBER COUNTRIES, INDIVIDUALLY AND COLLECTIVELY.

SECTION 2. FUNCTIONS(A) TO IMPLEMENT ITS PURPOSE, THE BANK SHALL HAVE THE FOLLOWING FUNCTIONS:

(I) TO PROMOTE THE INVESTMENT OF PUBLIC AND PRIVATE CAPITAL FOR DEVELOPMENT PURPOSES; (III) TO ENCOURAGE PRIVATE INVESTMENT IN PROJECTS, ENTERPRISES, AND ACTIVITIES CONTRIBUTING TO ECONOMIC DEVELOPMENT AND TO SUPPLEMENT PRIVATE INVESTMENT WHEN PRIVATE CAPITAL IS NOT AVAILABLE ON REASONABLE TERMS AND CONDITIONS;

(B) IN CARRYING OUT ITS FUNCTIONS, THE BANK SHALL COOPERATE AS FAR AS POSSIBLE WITH NATIONAL AND INTERNATIONAL INSTITUTIONS AND WITH PRIVATE SOURCES SUPPLYING INVESTMENT CAPITAL.

PROMOTING PRIVATE SECTOR DEVELOPMENT PART OF IDB MANDATE SINCE ITS FOUNDING

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TWO MODALITIES TO SUPPORT DEVELOPMENT

Structured and Corporate Finance Department (SCF)

Inter-American Investment Corporation (IIC)

Multilateral Investment Fund (MIF)

Opportunities for the Majority Sector (OMJ)

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THE IDB GROUP’S PRIVATE SECTOR WINDOWS

IDB GROUP

YEAR-END NSG PORTFOLIO AMOUNTS US$ Billions

WE’VE INCREASED OUR SUPPORT TO THE SECTOR

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IDB GROUP

The United States is a big supporter of the IDB’s private sector operations, and was one of the leading donor countries behind the establishment of the MIF and IIC.

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Largest shareholder of the IDB with 30% Largest shareholder of the IIC with 20% Largest shareholder of the MIF with 29%

The IDB Group also fosters private sector development in Latin America and the Caribbean by promoting an ecosystem that is conducive to business and by working with governments to improve regulatory environments.

Recent General Capital Increase lifted the previous limit of 10% on NSG lending in the IDB’s total lending portfolio subject to the boundaries of a capital adequacy model that ensures proper management of risk.

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