DEFINITION of 'Inter-American Development Bank - IDB'

A cooperative development bank founded in 1959 to accelerate the economic and social development of its Latin American and Caribbean member countries. The Inter-American Development Bank is owned by a total of 47 member countries including the United States and some European nations. The IDB assists Latin American and Caribbean countries in formulating development policies and provides financing and technical assistance to achieve environmentally sustainable economic growth, increase competitiveness, enhance social equity, fight poverty, modernize the state, and foster free trade and regional integration.

BREAKING DOWN 'Inter-American Development Bank - IDB'

The funds that the Inter-American Development Bank lends to its member countries are raised in the bond market. The bonds are backed by the loans the IDB makes, which carry the guarantee of capital pledged by the Bank's non-borrowing members. The bonds are triple-A rated and issued at market rates. The triple-A rating helps to keep borrowing costs for the member countries low.

RELATED TERMS
  1. Organisation for Economic Co-operation ...

    A group of 30 member countries that discuss and develop economic ...
  2. Caribbean Development Bank (CDB)

    The Caribbean Development Bank (CDB) is a multilateral financial ...
  3. Emerging Market Fund

    A mutual fund or exchange-traded fund that invests the majority ...
  4. Member Month

    The number of individuals participating in an insurance plan ...
  5. World Bank Group

    Five international organizations dedicated to providing financial ...
  6. Asian Productivity Organization ...

    A union of 20 Asian countries formed in 1961 to promote socioeconomic ...
Related Articles
  1. Investing

    South American Economies Reel from Low Chinese Demand

    Move over America, the tides have changed. China now has the greatest impact on Latin American economies.
  2. Financial Advisor

    Latin America’s Economic Forecast

    After a ten-year run, the economies of Latin America are in a decline. For sustainable, long-term growth, the region needs structural reforms.
  3. Insights

    World Bank Data For Dummies

    Developing countries can't always afford to track the data crucial to setting the right economic policies and programs. That's where the World Bank steps in.
  4. Insights

    Top 25 Developed and Developing Countries

    The difference between developed and developing countries, along with a list of the status of 25 nations around the world.
  5. Financial Advisor

    Top 3 Latin America Stock Mutual Funds (SLATX, PRLAX)

    Discover information about some of the most popular mutual funds that offer investors exposure to equities of companies in Latin America.
  6. Investing

    What is the International Monetary Fund?

    The International Monetary Fund fosters global monetary cooperation and sustainable economic growth.
  7. Managing Wealth

    Evaluating Country Risk For International Investing

    Investing overseas begins with determining the risk of the country's investment climate.
  8. Investing

    Is Royal Caribbean Too Expensive Now?

    Are Royal Carribean's valuation ratios out of control, or do fundamentals support the current market price?
  9. Investing

    3 Mutual Funds with Latin American Exposure

    Learn about three mutual funds that specialize in investing in securities issued by companies domiciled in the emerging markets of Latin America.
  10. Investing

    4 ETF Strategies for Growth in Latin America for 2016

    Use these strategies to invest in Latin American ETFs in 2016. The region has several underperformers such as Brazil but it still offers growth.
RELATED FAQS
  1. The Difference Between the International Monetary Fund and the World Bank

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ... Read Answer >>
  2. Is Mexico an emerging market economy?

    Learn the difference between a developed economy and an emerging market economy, and understand why Mexico is an emerging ... Read Answer >>
  3. What developed countries have the highest concentration in the banking sector?

    Learn about the developed countries that have the greatest concentration in the banking sector and the most important emerging ... Read Answer >>
  4. How do externalities affect equilibrium and create market failure?

    Learn about the responsibilities of the International Monetary Fund and its functions regarding the international monetary ... Read Answer >>
  5. What is the difference between research and development and product development?

    Understand the difference between research and development and product development. Learn why a company would want to invest ... Read Answer >>
  6. What developed countries have the largest proportion of industrial companies?

    Examine the industrial sector in developed countries, and learn about the shift in manufacturing production to emerging market ... Read Answer >>
Trading Center