IADB increases funding for fight against COVID-19

The Inter-American Development Bank (IADB) has made available almost $1.7 billion in additional funding for 2020 to confront the COVID-19 pandemic.

Through new programs to tackle the crisis and changes to the 2020 loan program, the IADB is now dedicating $2.8 billion. The initiative features four components: the immediate public health response, aid to vulnerable people most in need, assistance for companies and their employees so as to minimize losses, and support for fiscal policy. 

In Panama, a total of $8.75 million (which can be raised to $20 million) was made available to the government to redirect toward the purchase of equipment, hiring of services and improvement of health care response capability in indigenous areas. Panamanian authorities have also asked for $300 million to boost production with financing of micro, small- and medium- size companies and farmers. Another $400 million will go to help government finances.

In Honduras, the government has requested a shift in $50 million from four already approved loans so as to aim them at development and implementation of a new health project. This plan designed to contain and confront the coronavirus features efforts to limit the spread of the pathogen, hire health-care staff and buy medical equipment, implement innovative technologies like tele-medicine and tele-assistance, and encourage people to take care of their health.

For El Salvador, the IDB has authorized the disbursement of $15.4 million  which can be raised to $20 million if needed) to buy equipment such as ventilators, masks, protective gowns and monitors, among other gear. Two other projects are in the works: a US$250 million emergency program designed to promote macroeconomic and fiscal sustainability and a $250 million plan to boost public policy and fiscal management to address the country's health and economic crisis. Both aim to support the country's budget and provide liquidity so as to help it confront the crisis.