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Add to Preferred SourcesThe Inter-American Development Bank (IDB) Group and Agence Française de Développement (AFD) Group have stressed the importance of strengthening the partnership, and of thinking ahead towards future strategic collaborations and co-financing operations in Latin America and the Caribbean (LAC).
During a virtual meeting, IDB and AFD have exchanged ideas on the modalities of the support to be brought to Latin American countries both in their short term responses to COVID-19 and on medium to long-term recovery plans. These could be developed further, leading to a potential joint-cooperation aligned with climate and SDGs objectives, key drivers of the IDB-AFD partnership.
Proof of this ongoing cooperation is the signing of a co-financing agreement and the approval of two grant agreements between IDB and AFD: a Policy-based loan to support the decarbonization plan of Costa Rica (AFD: US$150 million and IDB: US$230 million, approved by the Legislative Assembly on May 16, 2020, to tackle the constraints of the pandemic) and two AFD grants to IDB regional facilities on gender parity and ageing populations in LAC, for US$4,3 million.
Laurence Breton-Moyet, AFD’s Director of Strategy, Cooperation and Communication, said: “Increased coordination between regional and national development banks will be key to promote sustainable development pathways and transition plans in the post-COVID response and to effectively channel development finance towards deeply rooted sustainable recovery investment plans.”
IDB and AFD Groups have a strategic cooperation track record in the area of climate change (decarbonization pathways, urban development, energy, transportation), and sustainable development. The two institutions signed a co-financing agreement in November 2018 targeting US$1 billion by 2021. The 2020 virtual meeting has allowed experts to dig into promising sectoral discussions on biodiversity, climate change, urban development, governance, gender equality, infrastructure, social sectors, migration and financial innovation, further enhanced by the participation of IDB Invest and Proparco, and finalizing with a discussion on the horizon for 2020-21.
Original source: AFD
Published on 20 May 2020