WASHINGTON, August 3, 2021 — In response to COVID-19 severely damaging the lives and livelihoods of millions of people in countries in Latin America and the Caribbean, the World Bank Group has deployed a record $ 29 , $ 1 billion in this region from the start of the crisis (April 1, 2020) until fiscal year 2021 (ending June 30, 2021) to combat the health, economic and social impacts of the pandemic, as well than to help the region meet challenges such as hurricanes and migration. It is the largest response to a crisis of this period in the history of the Bank Group.
Bank Group commitments and mobilizations during this period included a combined $ 14.5 billion from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) commonly referred to as the World Bank, $ 10.8 billion from the International Finance Corporation (IFC) to promote private sector-led sustainable development, and $ 3.8 billion in guarantees from the Multilateral Investment Guarantee Agency ( MIGA).
“Latin America and the Caribbean has been the region hardest hit by the COVID-19 pandemic, with 20% of global cases and one-third of global deaths. The high infection rates and the sharp contraction in growth have had devastating social and economic impacts, ”said Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean (LAC). “Since the start of the pandemic, we have acted quickly to provide substantial new funding to help countries cope with the crisis and assist the most vulnerable. “
The World Bank’s funding and expertise during this fiscal year focused on social protection, health emergencies, testing, vaccines and strengthening country health systems as well as the record deployment of short-term funding. term during the first few months of the pandemic to help keep the private sector afloat. .
IFC, the private sector arm of the World Bank Group, has committed $ 10.8 billion in Latin America and the Caribbean, including mobilization ($ 5 billion) and short-term finance ($ 2 billion). dollars), driven by increased demand for fast-start financing for the manufacturing, agri-food and service sectors, continued support to the financial sector, and successful commitments to establish public-private partnerships (PPP) in the region. Since April 2020, when the IFC launched its response to COVID-19, the IFC has committed nearly $ 3.2 billion in liquidity to the region, which has helped expand lending to MSMEs so that ‘they can continue their operations, worked with financial institutions to promote green finance, and supported export-oriented agro-industries in the region.
“IFC has strived to deliver innovative solutions to support sectors severely affected by the pandemic, with a focus on helping businesses save jobs and ensuring that MSMEs can access finance. Said Georgina Baker, IFC vice president for Latin America and the Caribbean, Europe and Central Asia. “We also continue to open new avenues to green the region’s financial system and promote greater financial inclusion for women,” she added.
Almost 40 percent of IFC’s own-account investments in the previous year were to finance climate-smart solutions. IFC Granted One of the First Sustainability-Related Loans to Corsan, a Water and Sanitation Service Provider in Brazil, to Reduce Water Losses in the Distribution System and Improve Efficiency energy efficiency of its operations. In addition, approximately $ 1 billion was spent on promoting greater financial inclusion for women, representing 66% of IFC’s total commitments in this area in the last fiscal year.
MIGA, the world’s largest political risk insurance provider with a mandate to help attract high-impact foreign direct investment to developing countries, issued just over $ 3.8 billion in dollars of new guarantees in Latin America and the Caribbean during the 15-month period. MIGA’s commitment to improving the lives of LAC citizens, who have been particularly hard hit by the COVID-19 pandemic, is strong; approximately half of all new MIGA guarantees in FY21 were issued in the LAC region. MIGA supported eight new projects in eight LAC countries in FY21; 98.6% of these new emissions were from MIGA’s $ 6.5 billion COVID-19 response program. An example of MIGA’s efforts to have a tangible development impact in the face of the pandemic is its very first engagement in the Bahamas. MIGA has issued guarantees on loans to the Bahamian government. These loans will be used to modernize two public hospitals and finance micro, small and medium enterprises.
“MIGA has worked closely with governments, businesses and financial institutions in the LAC region to deploy its guarantees and secure foreign private capital to complement efforts to mitigate the social and economic impacts of the pandemic,” said S. Vijay, vice president and chief operating officer of MIGA. lying down. “In addition to MIGA projects ensuring better outcomes for citizens’ health, FY21 projects in LAC have helped expand credit available to small and medium-sized enterprises, finance climate action and strengthen climate change. resilience. “
World Bank Group Response to COVID-19
Since the start of the COVID-19 pandemic, the World Bank Group has deployed more than $ 157 billion to combat the health, economic and social impacts of the pandemic, the fastest and most rapid response to the crisis. important in its history. The funding is helping more than 100 countries strengthen their pandemic preparedness, protect the poor and jobs, and launch a climate-friendly recovery. The Bank is also supporting more than 50 low- and middle-income countries, more than half of which are in Africa, in the procurement and deployment of COVID-19 vaccines and is providing $ 20 billion in funding for this purpose up to end of 2022..
Washington, DC Ruth González Llamas +1 (202) 6744026 [email protected] Bogotá, Colombia Darcy Crowe +57 (1) 313-644 [email protected] Washington, DC Vamsee Krishna Kanchi +1 (202) 458-9771 vkanchi @ worldbank.org