Development Finance Institutions join forces to respond to COVID-19 in developing countries

The development finance institutions (DFIs) of 16 OECD countries, grouped under the DFI Alliance, issued a joint statement to announce they will work together to respond to the COVID-19 global pandemic in developing countries.

The group will work collaboratively to bring liquidity to the market, support companies impacted by the virus, and promote new investment in global health, safety, and economic sustainability.

“The development finance institutions (DFIs) are committed to working collaboratively to meet the unprecedented global demands resulting from the outbreak of COVID-19.”

This unparalleled health crisis will seriously impact developing countries in ways that will impede their economic and social progress. The ability of DFIs to mobilize significant financial resources and bring technical expertise to private sector enterprises in emerging and frontier markets will be more important than ever.

The DFI Alliance members, through enhanced cooperation and the leveraging of pooled resources, will focus on reducing the impact of COVID-19 on essential business activities in these countries. Together, DFIs are working around the world to help resolve current liquidity issues in financial sectors, support the viability of existing companies impacted by the virus, and promote new investment in goods and services necessary to global health, safety, and economic sustainability.

The DFI Alliance is developing mechanisms designed to sustain companies, return them to full production, and restore employment opportunities essential to the societies in which they operate. In addition, the DFI Alliance is identifying opportunities to finance the local private sector response to the health crisis with the goal of speeding recovery.

Original source: DFC
Published on 06 April 2020