Providing loans for national institutional change

In thirty-three years of operations in Latin America and the Caribbean, the Inter-American Development Bank (IDB) made 70 loans for US$5,600 million to finance planning and reform projects totalling US$8,400 million. Examples of planning and reform orientated loans in 1993 include among others: $102 million for financial sector reform in the Dominican Republic; $72 million and $20 million loans for modernization of the Guatemalan financial system; $23.6 million for non-conventional financial organizations in Nicaragua; and $65 and $15 million loans for an investment sector reform programme in Trinidad and Tobago.

1. Providing low-interest loans
2. Providing loans

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

1. Freeing up availability of loans

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. Limited availability of loans
8. Insufficient programme funding
9. Inadequate diversification of loans to vulnerable countries
10. Fraudulent loans
11. Excessive anxiety on overseas lending
12. Domination of restrictive project loans by transnational banks
13. Discrimination against women in banking
14. Deteriorating terms of international financial loans to vulnerable countries
15. Defaults on international loans
16. Bank fraud
17. Bad loans

1. Changeableness
2. Change