Since its founding, the IDB has had nine increases of its ordinary capital.
On July 21st, 2010, the Board of Governors of the IDB formally approved the terms of the Bank’s latest capital increase.
The agreement will increase the Bank’s ordinary capital by $70 billion to over $170 billion. The IDB is thus the largest source of multilateral finance to Latin America and the Caribbean and the largest of all the regional development banks. It also increased resources for the Fund for Special Operations and the IDB Grant Facility, which will be used to provide an unprecedented aid package to Haiti.
A total of $1.7 billion will be contributed by shareholders in paid-in capital during this period. The remaining $68.3 billion will be in the form of callable capital, which are pledges by member countries and do not represent cash outlays.
The Bank’s capital increase will be implemented through 2015 as legislative branches in member countries appropriate the necessary funds.
The capital increase agreement sets a new institutional strategy for the Bank as well as an agenda to improve efficiency, transparency and governance of the IDB.
The new institutional strategy focuses on reducing poverty and inequality, promoting sustainable growth as well as providing preferential support to the least developed countries. It also seeks to promote development through the private sector.
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