Inter-American Development Bank
List of Deals
- 1964 $100,000,000 20-year bonds of 1964, due November 1, 1984
- 1968 $70,000,000 20-year bonds of 1968, due November 1, 1993
- 1962 $75,000,000 20-year bonds of 1962, due December 15, 1982
- 1964 $50,000,000 20-year bonds of 1964, due April 1, 1984
The Inter-American Development Bank (IDB) is an international institution whose members are governments. An agreement establishing the bank was drafted in 1959 by the Special Advisory Commission of the Inter-American Economic and Social Council of the OAS. The bank was established on December 30, after the agreement was ratified by eighteen countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, and the United States.
The initial resources of the bank were $1 billion, $850 million of which was authorized for ordinary capital and $150 million for the Fund for Special Operations (FSO).
Uruguay and Venezuela joined in 1960 in ratifying the agreement establishing the bank. The first annual meeting of the board of governors was also held that year in El Salvador. During that meeting the first board of executive directors was elected, and Felipe Herrera was named President of the IDB. Operations of the bank began on October 1, 1960, with 87 officials and 101 administrative support and secretarial employees at the bank headquarters in Washington, D.C. Shortly afterwards, the first technical assistance grant was made in the amount of $61,500 for institutional strengthening of the mining sector in Bolivia.
The United States put $394 million into the Social Progress Trust Fund of IDB the following year as part of the Alliance for Progress. It was also a year for several firsts: the first loan by the bank was made to Peru for $3.9 million to improve water and sewerage in Arequipa. Other loans followed for Brazil, Chile, Colombia, El Salvador, Uruguay, and Venezuela. The first FSO funding was also made to Bolivia for a global agriculture, electrical energy, and industrial credit program.
In 1962 the bank made its first loans for higher education to benefit universities in Argentina, Chile, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Peru. It also granted its first loans for science and technology to the Mexican Institute of Technological Research. In 1963 the IDB created a program to finance capital-good exports between borrowing countries in order to promote the sector and foment integration. That same year it also made its first loan to a subregional-development bank, the Central American Bank for Economic Integration, for $6 million.
Ordinary capital for the IDB increased by $1.3 billion in 1964, and in 1965 the FSO increased by $900 million. The IDB also created the Institute for Latin American Integration (INTAL), headquartered in Buenos Aires, during 1965. It also made the first loan to mitigate the effects of a natural disaster: $5.2 million to Costa Rica in the aftermath of the eruption of Irazú Volcano. In addition the IDB made the first loan for a binational integration project: a highway from Paranaguá, Brazil, to the Paraguayan border, and improvements to the port of Paranaguá, used for Paraguayan exports.
In 1966 the IDB arranged its first financing in the telecommunications sector in the amount of $250,000 by supporting studies for improvement of this sector and the use of satellites for integration purposes. It also created the Pre-Investment Fund for Latin American Integration.
Trinidad and Tobago joined the IDB in 1967, and the bank saw its second increase in resources with $1.2 billion added to the FSO. The following year, $1.005 billion was also added to ordinary capital.