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. An Investor's Guide To Bank Stress-Testing
    Investing Basics

    An Investor's Guide To Bank Stress-Testing

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center