Inter-American Development Bank - IDB

AAA

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.

INVESTOPEDIA EXPLAINS '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. Multilateral Investment Guarantee ...

    An organization established in 1988 by the World Bank and based ...
  2. International Bank Of Reconstruction ...

    A component of the United Nation's World Bank Group that was ...
  3. World Bank Group

    Five international organizations dedicated to providing financial ...
  4. AAA

    The highest possible rating assigned to the bonds of an issuer ...
  5. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. ...
  6. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
Related Articles
  1. What Is The World Bank?
    Insurance

    What Is The World Bank?

  2. An Introduction To The International ...
    Fundamental Analysis

    An Introduction To The International ...

  3. What Is An Emerging Market Economy?
    Economics

    What Is An Emerging Market Economy?

  4. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center