World Bank Mobilizes $20 Billion to Support LAC Economies

The World Bank Group (WBG) announced the mobilization of another tranche of US$20.7 billion to cushion the economic impacts of the Covid-19 pandemic in the Latin America and Caribbean (LAC) region.

This brings the World Bank’s support to LAC since April 2020 to US$49.8 billion, according to the bank’s statement.

The WBG’s subsidiaries, including the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), have also joined hands with the bank.

In the past year, IFC has invested US$19.5 billion in the region’s private sector, while MIGA issued US$5.4 billion in guarantees in its bid to attract foreign capital.

Nuestra región se enfrenta a importantes desafíos pospandemia. Estamos comprometidos a trabajar juntos para construir un crecimiento más sostenible e inclusivo que beneficie, especialmente, a los más vulnerables de América Latina y el Caribe.https://t.co/od44QL0tfZ

— Carlos Felipe Jaramillo (@CF_Jaramillo) August 18, 2022

The bank has played a pivotal role in helping governments in the region procure vaccines and strengthen health systems.

“We are committed to working together in critical areas such as addressing education losses, regaining fiscal sustainability, strengthening health, acting on the climate change agenda, and fostering climate-smart agriculture and the digital economy,” stated Carlos Felipe Jaramillo, the bank’s President for the LATAM region.

The bank said it will lend more money to micro, small and medium-sized enterprises (MSMEs) and women entrepreneurs so they can continue operations, in addition to promoting sustainable infrastructure projects.

“Our priority in the region is to help the private and public sectors work together to overcome crucial development challenges and navigate the economic headwinds that our countries are facing,” said Alfonso Garcia Mora, IFC’s Vice President for LAC.

MIGA, whose mandate is to help drive impactful foreign direct investment, issued US$1.6 billion in new guarantees in LAC. Since April 2020, it has issued US$5.4 billion for the region.