IADB considers 'guarantee fund' to back LatAm investments

The Inter-American Development Bank (IADB) may create a 'guarantee fund' to attract investments to Latin America, which needs financing for infrastructure projects. It would serve as a form of insurance for investors in private and public projects in the region. The Washington, D.C.-based multilateral lender received a mandate to study the creation of such a fund at its annual meeting last month in Argentina.

Many infrastructure projects around the region are on hold and struggling to find financing due to investor concern about corruption scandals related to Brazilian construction company Odebrecht, which has admitted to paying bribes to win public works contracts in many countries.