- Discussions will focus on a development model for mitigating the health, economic and environmental crisis.
- The annual meeting of Latin American and Caribbean banks will be held as a virtual event on 25 and 26th May.
The President of the European Investment Bank (EIB), Werner Hoyer and the President of the Latin American Association of Development Financing Institutions (ALIDE), Carlos Linares, opened ALIDE’s 51st General Assembly, which brings together the international development finance community, public entities, and the private sector.
The theme chosen for the General Assembly is “Beyond the threefold crisis: continuity or change?” Discussions will focus on challenges and opportunities for change in three areas: i) the digital revolution in the banking sector, SME digitalization, and regional transformation of production patterns; ii) financial inclusion of women and their enterprises; and iii) boosting a sustainable, green post-pandemic recovery.
In his speech, ALIDE’s President, Carlos Linares, said: “Latin America and the Caribbean is reeling under the impact of the so-called threefold crisis —health, economic and environmental— and is undergoing change at all levels. In this critical scenario, the region’s development banks, as their governments’ financial policy instruments, will gather to discuss a new model that for boosting LAC recovery from their own sphere of action.”
EIB President Werner Hoyer said: “The development banks of Europe and Latin America must join forces to promote investment that improves people’s lives and creates wealth sustainably and inclusively. Events like the ALIDE General Assembly demonstrate that only together will we be able to face the challenges ahead. As the EU’s climate bank and largest multilateral financer of projects combating climate change, the EIB can play an important role in fostering sustainable investment as Latin America recovers from the pandemic. We fully intend to do so in cooperation with ALIDE partners.”
The ALIDE General Assembly brings together the largest number of Latin American and Caribbean Development Banks at a single event. In addition to the discussions on development finance, ALIDE will elect its new Secretary General and the organisation’s Executive Committee.
EIB activity with ALIDE’s member banks
Since it became a member of ALIDE in 2016, the EIB has structured nine operations with ALIDE’s active members totalling EUR 865m and has built up a sizeable pipeline of promising operations. The Bank has also signed EUR 326m in intermediated loans with regional development banks that are associated members of ALIDE.
The EIB in Latin America
As the EU bank, the EIB finances projects that contribute to the region’s economy in line with EU’s external policy objectives: the development of economic, environmental and social infrastructure; private sector development; and climate change mitigation and adaptation.
Climate change mitigation and adaptation is the EIB’s main priority in Latin America, where the EU Bank supports projects focusing on the environment, renewable energy, energy efficiency and sustainable public transport schemes. Climate change adaptation projects include upgrading infrastructure, to make it more resilient in the face of more volatile and unpredictable weather patterns.
The EIB provides economic support for projects in Latin America by facilitating long-term investment with favourable conditions and by providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of EUR 10.4bn to support 140 projects in 14 countries in the region.
EIB and Team Europe global response to COVID-19
In his opening speech, President Hoyer proposed to provide for emergency financing in cooperation with the European Commission, as part of the EIB’s operational response to the global impact of the COVID-19 epidemic. It is part of the EIB contribution to the Team Europe response to the COVID-19 crisis.
As part of the Team Europe response to the pandemic, the EIB has been working closely with ALIDE member banks. The EIB is providing EUR 350m to: Banco do Nordeste do Brasil (BNB) in Brazil, Corporación Financiera de Desarrollo S.A. (COFIDE) in Peru and Nacional Financiera (NAFIN) in Mexico, plus EUR 30m in accelerated disbursements of existing loans, and EUR 15 million allowing adapted eligibility (to include support for small businesses) for projects in the region.