IDB fund gets US$20mn to support projects boosting cross-border trade

Friday, April 27, 2012

IDB received US$20mn in contributions and pledges from Canada, Mexico, Spain and the US for a trust fund that will support projects aimed at reducing cross-border trade, transport and logistics costs and expand trade in Latin America and the Caribbean, the multilateral lender said in a press release.

Trade within the region is still "far below" potential due to insufficient regional infrastructure, trade facilitation measures and trade regulatory architecture, IDB said. "Cross-border projects could help lower those transaction costs, boost export capacity and lead to a better distribution of trade benefits."

IDB said it will work with governments in the region to identify priority projects, with an emphasis on Central America and the Caribbean.

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To promote such projects and leverage its traditional lending with new financing mechanisms, IDB established a multi-donor integration fund that complements its Fund for Integration Infrastructure (FIRII), the release reads.

Colombia has also expressed interest in contributing to the fund, according to the release.