IDB to approve $ 1.25 billion in operations for Colombia in 2021
PRESS RELEASE of IDB
March 19, 2021
At its 2021 annual meeting, the Inter-American Development Bank (IDB) signed a pledge with the Colombian government to provide the country with $ 1.25 billion in aid in 2021. The financing will contribute to sustainable and inclusive economic recovery from Colombia.
The signing ceremony took place in the presence of the Colombian Minister of Finance and Public Credit, Alberto Carrasquilla; the director of the National Planning Department of Colombia, Luis Alberto Rodríguez; the Director of the Country Department of the Andean Group of the IDB, Tomás Bermúdez; and the Representative of the IDB in Colombia, Ignacio Corlazzoli. From the IDB, were also present Benigno López, vice-president of sectors; Richard Martínez, Vice President for Countries; James Scriven, CEO of IDB Invest and Irene Arias, CEO of IDB Lab.
The resources will contribute to the financing of the general budget of Colombia for this fiscal year and will support specific investment projects in the areas of digital transformation of justice, logistics and public-private partnerships. In addition, the funding will support Colombia’s public policy efforts in the areas of migration and sustainable growth, as well as two initiatives of the Office of the Comptroller General, Colpensiones and Bancóldex.
“For Colombia, the IDB is a key partner in terms of access to finance and technical assistance,” Minister Carrasquilla said. “We always give priority to strategic initiatives for the development of our country in bilateral conversations. This year, the support of the IDB will be instrumental in moving our economic recovery program forward. The credit program we formalized today, involving loans to the public sector, is a clear example of this.
Ongoing projects include a $ 600 million budget support program to strengthen the country’s public policy agenda for green growth and sustainable development. The effort represents an important step, because it is the first time that an operation of this nature is simultaneously articulated with a political dialogue and coordinated with other co-financiers. Co-financing will total nearly $ 1.2 billion.
In recognition of the important steps taken by Colombia to manage migration, including the recent approval of the Temporary Protection Status for Venezuelan Migrants, the IDB, in coordination with the World Bank, will support the country’s public policy program in this area. and help advance dialogue and support from the international community.
The digital transformation of justice will be at the heart of a second already structured program. This program will aim to increase the effectiveness, efficiency and transparency of the Colombian judicial system.
The financial support of the IDB to Barranquilla in 2022 for the execution of its Development Plan was also ratified on the sidelines of the Annual Assembly. Support will focus on investment areas associated with biodiversity and urban equality. In association with the Spanish Agency for International Development Cooperation (AECID), this program will immediately begin to structure actions to facilitate access to services and improve quality; improve public spaces and housing; integrate biodiversity into urban development; and achieve the environmental cleanliness of the city’s watersheds.
The $ 150 million health loan deal approved in 2020 will also be signed today. The loan will help increase the efficiency of public health insurance spending and improve the capacity and sustainability of the general health and social security system in terms of coverage, equality and financial protection. This operation, whose disbursements will be based on results, will be the first of its kind between Colombia and the IDB. Thanks to this credit, $ 9.6 million in additional non-reimbursable resources will be mobilized to finance the health needs of migrants. These resources will come from the non-reimbursable mechanism of the IDB and a grant of 2 million euros from the German government.
In addition, the execution phase begins today for a $ 50 million project aimed at supporting Colombian adolescents and young people in the development of 21st century skills within the framework of the Sacúdete program, signed at the end of 2020. Colombian President Iván Duque Márquez, First Lady María Juliana Ruiz, President of the IDB Mauricio Claver-Carone and the Executive Director of the IDB for Colombia and Peru Sergio Díaz Granados will attend the ceremony this afternoon.