Providing loans for the environment

In 1993, the Inter-American Development Bank (IDB) approved a record US$1,200 million in loans for 13 projects that will benefit the environment. Of these finances, 65% were directed to urban environmental projects and particularly water quality, and 35% were directed to green environmental projects and environmental institution building. Examples include among others: $130 million for environmental protection and resettlement at Yacyreta; $110.2 million for environmental management of, and $50 and $350 million loans to a sanitation programme for, Guanabara Bay basin in Brazil; in Argentina, $150 million for sanitation and flood control in the Reconquista river basin, and $5 and $25 million loans for the development of environmental institutions; $130 million for the Medellin river sanitation project, $58 and $23 million loans for the national environmental programem, Colombia; $14.9 million for an Ecuadorian coastal resource programem; and $16.7 million for natural resource management of a Hondurian reservoir watershed.

1. Providing loans

1. Reducing uncertainty of development programmes due to short-term loans

1. Freeing up availability of loans
2. Establishing environmental investment funds

1. Unpaid debts
2. Unethical financial practices
3. Uncertainty of development programmes due to short-term loans
4. Reverse flow of financial aid
5. Restrictive conditions on loans through intergovernmental facilities
6. Racial discrimination in according financial loans
7. Over-dependency on international financial institutions
8. Limited availability of loans
9. Insufficient programme funding
10. Inadequate diversification of loans to vulnerable countries
11. Fraudulent loans
12. Excessive anxiety on overseas lending
13. Domination of restrictive project loans by transnational banks
14. Discrimination against women in banking
15. Deteriorating terms of international financial loans to vulnerable countries
16. Defaults on international loans
17. Bank fraud
18. Bad loans