Abstract
The Inter-American Development Bank (IDB) is a sort of a mini-World Bank with a focus on Latin America and the Caribbean. The IDB has 46 members. Its mandate is to contribute to the social and economic development of Latin America,1 and it does this through the provision of funds on relatively favorable terms.2 Similar to the World Bank, the IDB obtains its funds through capital contributions from its shareholders and from borrowings in the international capital markets based on the callable capital of its member governments. Callable capital is, in essence, the guarantee of its more creditworthy members. At the end of 1993, the IDB had a total capital of approximately $64 billion. In 1994, the IDB completed a negotiation in Guadalajara, Mexico, for a new capital replenishment. It obtained a commitment for an additional $40 billion from its member governments over a five-year period. At the end of 1993, the IDB had outstanding loans of around $28 billion, had borrowings in the international capital market of around $23 billion, and had disbursements of around $4 billion to its Latin American and Caribbean members.
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