Development Finance Institution actions and measures to support the crisis

The global health crisis of Coronavirus is generating exceptional negative impacts. In this scenario, governments around the world implement measures to stabilize the advance of the pandemic and reduce damage, strengthen their health systems, and alleviate the effects on the economy or help the most vulnerable sectors to cope with the crisis.

As instruments of government financing policy, development banks in Latin America and the Caribbean, as well as international financial organizations, are taking specific measures to support the productive and social sectors to face the negative impacts generated by the crisis.

In this section, created as an observatory, the actions and measures implemented are presented. The purpose is to learn from example to act more effectively. Stop the crisis with action and shared knowledge.

Initiatives from the banks

GCF Board accelerates climate finance ahead of COP26 meeting, approving USD 1.2 billion for new adaptation and mitigation action

REGIONAL | GCF Board accelerates climate finance ahead of COP26 meeting

October 8, 2021.- The Green Climate Fund (GCF) Board has approved 13 new projects for mitigation and adaptation action, allocating USD 1.2 billion in GCF resources for climate action – a record amount for a single Board meeting.
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REGIONAL | Debt reduction for developing countries must be part of response to post COVID-19 economic situation

October 6, 2021.- An effective response to the post Covid-19 economic situation must include significant and broad debt reduction for all developing countries. This was one of the prescriptions put forward by CARICOM Secretary-General Her Excellency Carla Barnett as she participated in a panel discussion during the World Leaders Summit Dialogue on Inequality at UNCTAD XV in Barbados on Tuesday 5th October.
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REGIONAL | TNFD launched of the Development Finance Hub

October 6, 2021.- The new Taskforce on Nature-related Financial Disclosures (TNFD) has just held its first plenary in Paris. After the plenary session, the Development Finance Hub (DevHub) was launched and presented to Public development banks (PDBs) from AFD’s headquarters.
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EBRD launches GEF-supported circular economy program

REGIONAL | EBRD launches GEF-supported circular economy program

October 5, 2021.- To address barriers to the transition to a circular economy, the European Bank for Reconstruction and Development (EBRD) is launching a new program, called the “Circular Economy Regional Initiative,” in Turkey and the Western Balkans.
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GERMANY | Systematically assessing and managing environmental and social risks

October 4, 2021.- KfW and DEG offer joint e-learning platform for financial institutions. Employees of financial institutions can learn in interactive courses how to identify, avoid and manage the risks and impacts of their financing in accordance with international standards.
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CANADA | BDC and Cossette launch All for entrepreneurs

October 4, 2021.- BDC, Canada’s bank for entrepreneurs, is launching All for entrepreneurs, a national integrated campaign developed and produced in partnership with Agency of Record Cossette, which will be rolled out across multiple media touchpoints starting October 4.
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Putting Public Finance on the Right Side of History

REGIONAL | Putting public finance on the right side of history

October 1, 2021.- Opinion piece by Werner Hoyer and John Murton on the importance of financing renewable energy.
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CDB President calls for strengthening social resilience to place the Caribbean on a sustainable welfare path

REGIONAL | CDB President calls for strengthening social resilience to place the Caribbean on a sustainable welfare path

September 29, 2021.- The President of the Caribbean Development Bank (CDB), Dr Gene Leon, urged the region to take bold and innovative steps to surmount the significant development challenges that have been amplified by the ongoing COVID-19 pandemic and to shift to a new development trajectory.
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Short-Cycle Programs can Help Boost Employment and Economic Recovery in Latin America and the Caribbean

REGIONAL | Short-cycle programs can help boost employment and economic recovery in Latin America and the Caribbean

September 28, 2021.- Short-cycle higher education programs (SPCs), can be a highly effective tool in times of crisis such as the current COVID-19 pandemic, when millions of people across Latin America and the Caribbean need to acquire the training and skills to urgently join the formal job market, according to a new World Bank report.
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City Climate Finance Gap Fund completes first year of operation with support to 33 cities

REGIONAL | City Climate Finance Gap Fund completes first year of operation with support to 33 cities

September 23, 2021.- The City Climate Finance Gap Fund (the Gap Fund) has approved technical assistance for 33 cities since its operational launch in September 2020, filling a critical gap in technical assistance funding to help cities turn their climate ambitions into finance-ready projects.
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EIB leaders urge investment in innovation for climate and post-pandemic recovery at Bled Strategic Forum

REGIONAL | EIB leaders urge investment in innovation for climate and post-pandemic recovery at Bled Strategic Forum

September 3, 2021.- Financing innovation is key to driving the development of low-carbon technologies, European Investment Bank President Werner Hoyer said at the Bled Strategic Forum in Slovenia, Thursday.
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Record Demand for World Bank USD 5 Billion 7-Year Sustainable Development Bond

REGIONAL | Record demand for World Bank USD 5 Billion 7-year sustainable development bond

September 2, 2021.- The World Bank priced a USD 5 billion 7-year Sustainable Development Bond maturing in September 2028. The deal attracted nearly 150 orders and an orderbook reaching over USD 10.2 billion, a record for the World Bank in the maturity.
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GCF boosts COVID-19 low-carbon energy relief with anchor investment

REGIONAL | GCF boosts COVID-19 low-carbon energy relief with anchor investment

September 1, 2021.- The USD 80 million Energy Access Relief Fund (EARF) has drawn together a unique coalition of financial support for 90 companies in Africa and Asia that have been filling energy access gaps with low-carbon solutions but now face bankruptcy form the COIVD-19 fallout.
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African Development Bank to launch new initiative to integrate natural capital into finance in Africa

REGIONAL | African Development Bank to launch new initiative to integrate natural capital into finance in Africa

September 1, 2021.- On 9 September, the African Development Bank Group, Green Growth Knowledge Platform (GGKP(link is external)), and other partners will launch a new initiative on integrating natural capital into development finance in Africa.
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Gender-focused solutions for the post-COVID return to rural areas

REGIONAL | Gender-focused solutions for the post-COVID return to rural areas

September 1, 2021.- The COVID-19 pandemic has given rise to a new wave of migration, the people are leaving the cities to return to rural areas. By mid-2020 in Peru, for example – just a few months after the pandemic began – 167,000 people had left the capital city to return to rural regions.
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REGIONAL | 6 Ways to Jumpstart a Green Recovery from COVID-19

June 5, 2020.- By Bruce Dunn, Director, Safeguards Division concurrently Officer-in-Charge, Environment Thematic Group and Erin Sinogba, Communications and Knowledge Management Consultant,Environment Thematic Group
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REGIONAL | Global Environment Fund approves US$27mln for new projects in Latin America and Caribbean

June 5, 2020.- The projects will take place in Brazil, Mexico, Nicaragua, Peru and Uruguay and will be implemented by FAO.
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REGIONAL | OECD and UN institutions demand green economic recovery from Covid-19

June 5, 2020.- The 12 organisations which make up the Partners for Inclusive Green Economy have identified 10 core principles they argue should inform national and international recovery efforts.
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EUROPE | EIB and UNOPS sign new agreement to help governments better respond to emergencies and natural disasters

June 4, 2020.- UNOPS and the European Investment Bank (EIB) will work together to target challenges to sustainable development, including climate change.
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REGIONAL | Platform for Collaboration on Tax releases toolkit

June 4, 2020.- This is the third Toolkit published by the PCT to provide guidance on areas of international taxation of particular concern to developing countries.
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REGIONAL | GEF Council agrees on $700 million for urgent environmental action

June 3, 2020.- This is the third Toolkit published by the PCT to provide guidance on areas of international taxation of particular concern to developing countries.
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BRAZIL | Government publishes MP to institute new credit guarantee program including small businesses

June 2, 2020.- According to the MP published in the Official Gazette, the Federal Government is authorized to increase its participation in the Guarantee Fund for Investments (FGI),
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Map and flag of Panama

PANAMA | Panama will expand access to productive financing for MSMEs in light to COVID-19

June 2, 2020.- The program will prioritize support for the sustainability of agricultural MSMEs and their value chain to support employment due to the crisis, and with a focus on food security.
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REGIONAL | CABEI, KfW and EU contribute US$350 million to MSMEs affected by COVID-19

May 29, 2020.- Through the Facility, CABEI makes credit resources amounting to US$350 million available to MSMEs to finance their working capital and investment needs through its network of financial institutions throughout the region
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Cuba US(3)

CUBA | Cuba wants Cubans abroad to open accounts in its banks, and the embargo might allow it

May 29, 2020.- The measure is an attempt to attract much needed foreign currency into the country when the coronavirus pandemic has shut down tourism and plunged the economy into a new low.
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REGIONAL | Let’s Think Small When it Comes to Development Banks and COVID-19

May 28, 2020.- As governments consider how to respond to COVID-19, one potential solution has been flying under the radar: subnational development banks, or SDBs.
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HONDURAS | CABEI approves US$50 million to Honduras for prevention, detection and treatment of COVID19

May 26, 2020.- Honduras is the first country in the region to receive resources from the Development Policy Operation (DPO) program, reaffirming CABEI’s support to increase actions to contain the Pandemic in the country.
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ARGENTINA | FONPLATA supports Argentina’s efforts to fight the COVID-19 health and socioeconomic emergency

May 24, 2020.- In response to the coronavirus health emergency in the region, the Development Bank made available to its member countries a special non-reimbursable cooperation fund.
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REGIONAL | ADB Governors Approve Corporate Financial Matters in First Virtual Annual Meeting

May 22, 2020.- The second stage of the Annual Meeting, including seminars with Governors and other senior government officials, members of the private sector, representatives of international organizations and civil society organizations.
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Global epidemics and economic impact

PARAGUAY | Paraguay will strengthen public policy and fiscal management to tackle COVID-19

May 19, 2020.- US$210 Million Loan From The IDB And Kif Will Address Public Health And Economic Impact Caused by the Pandemic.
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REGIONAL | IDB-AFD Strengthen Partnership in Times of COVID-19 Crisis and Beyond

May 20, 2020.- Towards this end, IDB and AFD have exchanged on the modalities of the support to be brought to Latin American countries both in their immediate to rather short terms responses to COVID19.
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SPAIN | Scaling up cooperation among Development Finance Institutions (DFIs) in response to COVID19

May 16, 2020.- Our group of more than 25 development finance institutions (DFIs)4 has an important role to play by responding quickly and flexibly to support the private sector in developing countries through the crisis.
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BRAZIL | First funding granted by FONPLATA to non-sovereign public sector, the Brazilian BDMG

May 15, 2020.- FONPLATA granted an 8-year US$36-million revolving line of credit to the Development Bank of Minas Gerais – BDMG, Brazil, which will be used to fund projects initiated by the municipalities of the State of Minas Gerais.
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COSTA RICA | ¢900 Billion (US$1,586 million) Fund to Revive the Economy

May 14, 2020.- The SUGEF, Conassif and the state banks agreed to the elimination of procedures and the relaxation of conditions to access the 900 billion colones (US$1,586 million) fund that seeks to revive the economy.
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CANADA | BDC to provide new support for medium-sized companies to help navigate COVID-19

May 11, 2020.- Program to provide liquidity for medium-sized businesses whose credit needs exceed what is already available through the BCAP.
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REGIONAL | CAF raises coronavirus relief funds in bond market

May 8, 2020.- CAF sold US$800 million worth of three-year bonds on Thursday, raising money for its COVID-19 response as it underpins its countercyclical role in Latin America, according to a source involved in the deal.
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REGIONAL | IDB, World Bank sign the first Framework Agreement for mutual reliance in procurement

May 8, 2020.- The Agreement will allow the IDB and the World Bank to leverage each other’s capacities and move in a more expeditious manner, to prepare and implement projects in countries and channel much needed resources to address the needs of the Region.
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URUGUAY | Uruguay considers bonds to fund coronavirus relief

May 7, 2020.- Uruguay is considering selling bonds on international markets if the conditions are right, even as it lands new financing from multilateral lenders to get through the COVID-19 pandemic.
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GUATEMALA | CABEI approves US$193.2 million to Guatemalan healthcare system

May 5, 2020.- It is noteworthy that US$79.0 million of the US$193.2 million will be provided by the Korea Development Co-Financing Facility for Central America; an agreement between the Ministry of Economy and Finance of the Republic of Korea and CABEI.
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SPAIN | Multilaterals spin a global web to contain coronavirus

May 5, 2020.- From the World Bank to the African Development Bank, multilaterals are pooling cash and human resources to combat the impact of Covid-19 on members.
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REGIONAL | Fonplata finds funding for coronavirus response

May 4, 2020.- Bolivia-based development bank gets $130 mln from Uruguay’s central bank to cover
emergency loans.
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REGIONAL | Japan to Support ADB Developing Member Countries' Response to COVID-19 Challenges

April 30, 2020.- The Asian Development Bank (ADB) has provided several targeted interventions to support its developing member countries (DMCs) in combating the effects of the novel coronavirus disease (COVID-19) pandemic from its early stages.
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CANADA | BDC launches Bridge Financing Program to support Canadian venture capital-backed companies

April 29, 2020.- In response, BDC Capital, the investment arm of Business Development Bank of Canada (BDC), has recently launched the BDC Capital Bridge Financing Program, to maintain and protect the growth of the Canadian venture capital sector.
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REGIONAL | How DFIs are responding to the COVID-19 crisis

April 29, 2020.- The role of development finance institutions has expanded in the past decade, as more have been created and they have been allocated greater amounts of capital.
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INDIA | Asian Development Bank grants US$1.5 billion loan to India to tackle Covid-19 outbreak

April 28, 2020.- The role of development finance institutions has expanded in the past decade, as more have been created and they have been allocated greater amounts of capital.
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MEXICO | Development bank announces US $12bn to support business

April 26, 2020.- Program will provide loans to up to 30,000 small and medium-sized businesses
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BRAZIL | Government and institution measures in response to COVID-19

April 26, 2020.- The Minister of Economy, Paulo Guedes, announced in March 26th that the economic stimulus package, closed by the Ministry of Economy, Public Banks and the Central Bank will be US$ 150 billion (R$ 750 billion), to face the economic impacts of COVID-19 in Brazil.
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REGIONAL | Extending loans and providing equity

April 26, 2020.- The European Investment Bank and national development banks provide a framework through which a European Recovery Fund could work quickly and effectively.
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RUSSIA | VEB.RF has expanded the program of support of loans

April 26, 2020.- VEB.RF has extended a medium-sized business program to provide guarantees to banks as part of loans at 0% to pay salaries. This is stated in the press service of the state corporation.
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RUSSIA | Meeting with Government members

April 15, 2020.- Attending the meeting were Prime Minister Mikhail Mishustin, Chief of Staff of the Presidential Executive Office Anton Vaino,
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EL SALVADOR | IMF Executive Board Approves a US$389 Million Disbursement to El Salvador

April 14, 2020.- This assistance will help El Salvador direct funds swiftly to the country’s most affected sectors, including the healthcare system.
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REGIONAL | Asian Development Bank triples coronavirus war chest to $20bn

April 13, 2020.- Around $18 billion is earmarked for governments, many of which are readying massive stimulus programs to support their economies during the crisis.
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COSTA RICA | CABEI donates US$95,000 for studies to strengthen the Costa Rican Justice System

April 13, 2020.- The Ministry of Justice and Peace carries out efforts to formulate an Infrastructure Works and Equipment Program for the Penitentiary System.
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REGIONAL | Zero hour: Our region as it faces the pandemic

April 13, 2020.- In the case of Latin America and the Caribbean, this performance was even more dramatic. To find worse growth levels than what the region recorded in the last seven years, one must look back seven decades.
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FRANCE | France to set aside nearly $1.3 billion to combat coronavirus in Africa

April 10, 2020.- France’s President Emmanuel Macron announced Thursday nearly $1.3 billion of development aid to Africa for the fight against the coronavirus.
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GERMANY | COVID-19: Pandemic Legislation in Germany

April 10, 2020.- Both the German federal government and various German federal states are pushing ahead with packages of measures to mitigate the as-yet-unforeseeable economic consequences of the COVID-19 pandemic.
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REGIONAL | IDB report proposes economic policies to help countries overcome sharp contraction

April 9, 2020.- The 2020 Latin American and Caribbean Macroeconomic Report analyzes growth scenarios amid coronavirus pandemic
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REGIONAL | EBRD President calls for “collective responsibility” in response to coronavirus

April 8, 2020.- “We have a collective responsibility,” the EBRD head said at the meeting of the EU Foreign Affairs/Development Council today which he joined via video link.
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REGIONAL | Mobilizing Development Banks to Fight COVID-19

April 8, 2020.- Both developed and developing countries urgently need large-scale funding to help maintain economic activity and jobs during the current pandemic.
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REGIONAL | CDB to provide US$3 million for equipment in response to the COVID-19 pandemic

April 7, 2020.- The Caribbean Development Bank (CDB) is providing funds to purchase personal protective equipment needed by its Borrowing Member Countries (BMCs) to tackle the COVID-19 pandemic.
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Banco Ciudad Arg

ARGENTINA | Banco Ciudad launches loans for MSMEs at rates of 20% to 24%

March 29, 2020.- . In the context of the economic slowdown due to quarantine, Banco Ciudad will launch, as of April 1, new lines of credit to assist the productive sectors of Buenos Aires.
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GERMANY | KfW coronavirus aid: loans for companies

March 27, 2020.- . The german development bank has launched programs to help the economic sectors to deal with the sanitary crisis.
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MEXICO | Development Bank forgives debts and moratorium

March 26, 2020.- The program will allocate ¢ 8,000 million for the recovery and reactivation of SMEs at risk from the economic situation caused by the coronavirus
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CHILE | Corfo refocuses programs to find solutions around coronavirus

March 26, 2020.- It aims at solutions in mechanical ventilation, remote work and service for isolated people, among others.
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SPAIN | Measures in ICO against the coronavirus

March 25, 2020.- The Government has approved a program of guarantees “pari passu” of 100,000 million euros that will be provided by the Ministry of Economy and Digital Transformation and managed by the ICO.
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COLOMBIA | National Government authorizes Findeter and Bancóldex to offer loans to face COVID-19

March 25, 2020.- Findeter may grant credits with compensated rate to the territorial entities to face the coronavirus, Bancóldex will do the same with companies or entities that meet the conditions of Decree 468.
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BOLIVIA | Fonplata grants Bolivia US $ 200 thousand to fight the coronavirus

March 25, 2020.- The financial entity approved the creation of a special non-reimbursable technical cooperation fund.
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Curazao Korpodeko ALIDE

CURAÇAO | COVID-19: Solidarity package: Emergency measures for mitigating the effects of the crisis

March 24, 2020.- During a special press conference, the government announced a series of measures, or a so-called solidarity package to mitigate the effect of the crisis caused by the COVID-19 virus.
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Bancos Medidas México

MEXICO | Banks will defer loan payments to six months

March 24, 2020.- In the face of the coronavirus contingency, the Association of Banks of Mexico is preparing measures, since there will be difficulties for companies and individuals to meet their credit commitments.
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B Mundial ALIDE Web

INTERNACIONAL | Message from the World Bank

March 23, 2020.- David Malpass urges G20 leaders to suspend all bilateral debt payments from poorer countries, to focus resources on fighting the Coronavirus pandemic and reducing recovery time.
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REGIONAL | Coronavirus: CAF makes USD 2.5 billion available to countries

March 23, 2020.- As an ally of development in Latin America, CAF makes available an Emergency Credit Line of rapid disbursement of up to USD 2.5 billion, which will allow the authorities to offer a rapid and timely response to mitigate the effects of the expansion of COVID-19 .
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BRAZIL | BNDES takes its first steps to shore up company cash flows and assist workers against coronavirus

March 22, 2020.- The Bank anticipates making an initial R$55,000 million injection into the economy to enable companies in all sectors to continue operating. The amount involved represents almost all of BNDES’ disbursements in 2019.
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ARGENTINA | Bancor will offer assistance to MSME in critical sectors

March 22, 2020.- Bancor will open a 4,000 million peso credit line for its MSME customers to help them weather the health crisis. This is in addition to the guarantee Governor Juan Schiaretti announced today.
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REGIONAL | IDB ready to support Mercosur countries in response to COVID-19

21 March, 2020.- The IDB responded today to the call for support from the four Mercosur member countries to collaborate with other multilateral organizations to evaluate lines of action that contribute to effectively face the challenges derived from combating the spread of the coronavirus.
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HONDURAS | Banhprovi announces three-month freeze on loan capital and interest payments in Honduras

March 20, 2020.- The President of Banco Hondureño de la Producción y la Vivienda (Banhprovi), Mayra Falck, announced in HRN that capital and interest payments on loans in affiliated banks would be frozen for a period of 3 months.
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BRAZIL | BNB extends the terms of Crediamigo and broadens the conditions for that financing

March 20, 2020.-The Bank is raising the value of the contracts from R$50 to R$100,000 without any obligation to guarantee real guarantees, but only personal ones.
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BRAZIL | CAIXA announces more measures to mitigate the negative impact of Covid-19

March 19, 2020.- These loans will benefit individuals, construction companies and developers. One of the most important measures is the possibility of pausing the payment of financing contracts by diluting the difference over the full term of the loan.
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BancoEstado Chile Web ALIDE

CHILE | BancoEstado unveils support measures for its customers

March 19, 2020.- These measures are made possible by the US$500 million BancoEstado capitalization announced this Thursday by the Finance Minister.
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COSTA RICA | Banco Nacional announces measures in response to the Presidential Instruction

March 19, 2020.- This will bring down the Base Interest Rate on Deposits (BIR), today located at 4.35% and to which the interest rate of loans in colones are linked; this is what individuals and companies pay for loans.
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BRASIL |BRDE: R$300 million will be available to promote public relations

March 18, 2020.- Projects of priority for the state’s development will have access to R$300 million at Banco Regional de Desarrollo Económico del Extremo Sur (BRDE). The Promove Sul permanent revolving fund was launched on Tuesday (03/17).
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BRAZIL | BDMG makes affordable credit available so that health companies can prepare themselves

March 18, 2020.- Banco de Desarrollo de Minas Gerais (BDMG) is creating financing lines for the manufacture of products in high demand and working capital to minimize the impact of the disease.
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COSTA RICA | Infocoop and Banco Nacional announce lending terms to cope with the impact of Covid-19

March 18, 2020.- Infocoop adopted the agreement to lower all lending interest rates charged to the country’s cooperative associations, in order to support that sector –particularly agricultural cooperatives– , which has been suffering the effects of different encumbrances.
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ECUADOR | Moreno: Public banking system postpones interest and loan payments

March 18, 2020.- President Lenín Moreno stated that interest and loan payments would be postponed for public banking customers. He also declared that in the next few days he will be announcing long-term contingency loans for the recovery of the production system, as well as a plan for self-employed entrepreneurs and workers.
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ARGENTINA | 66/5000 Coronavirus: important changes in Banco Nación

March 16, 2020.- The bank ordered that in the case of individuals who collect retirement and pension payments, the survivor accreditation deadline be suspended for a 30-day period, among other special measures.
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Related Publications

Responses of Latin American Development Banks to the economic crisis
Development banks are at the forefront in mitigating the impact of the pandemic through their efforts to design and implement government programs in cooperation with local financial systems and regional and multilateral financial organizations. The sector’s immediate aim is to provide liquidity to families by social assistance programs, and to the business sector. These were identified in the study published by ALIDE and based on an analysis of the measures taken by Latin American and Caribbean banks. An initial version of this study was presented to the World Bank as a collaboration.

The Counter Cyclical Role of Development Banking to Face the International Economic Crisis
The current financial crisis has called to reflection not only on the operation of the markets, but also on the role of the State in regulation the financial system and its transparency, among other topics. This means that the action of the State should be directed to help the financial markets to operate increasingly better, and there is not doubt that their activity is fundamental in times of crisis when the operation of the payment and credit mechanism is in danger

DFIs and Regional Development Finance Institutions and Goverments Actions