Inter-American Development Bank - IDB

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. Developed Economy

    While there is no one, set definition of a developed economy ...
  2. Enterprise For The Americas Initiative ...

    A program to boost hemispheric trade unveiled by U.S. President ...
  3. Organization for Economic Cooperation ...

    A group of 30 member countries that discuss and develop economic ...
  4. Emerging Market Fund

    A mutual fund or exchange-traded fund that invests the majority ...
  5. Asian Development Bank

    Founded in 1966, its headquarters are in Manila, Philippines. ...
  6. Caribbean Development Bank (CDB)

    The Caribbean Development Bank (CDB) is a multilateral financial ...
Related Articles
  1. Markets

    3 Characteristics of Caribbean Economies

    An overview of the common characteristics of Caribbean economies.
  2. Markets

    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. Markets

    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.
  4. Personal Finance

    What Is The World Bank?

    You've heard of the World Bank, now find out how it functions and why some groups oppose it.
  5. Markets

    What is the International Monetary Fund?

    The International Monetary Fund fosters global monetary cooperation and sustainable economic growth.
  6. Markets

    How China’s Slowdown Affects Your Latin American Investments (IBOV, IGPA)

    China's economy is slowing down and its major Latin American trading partners will feel the headwinds, as will your Latin American investments.
  7. ETFs & Mutual Funds

    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.
  8. Markets

    Evaluating Country Risk For International Investing

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

    Caribbean Currencies: An Overview

    As many as ten currencies are used among the islands of the Caribbean. A fixed exchange rate regime is the most common exchange regime found in the region; however, a few of the larger islands ...
  10. ETFs & Mutual Funds

    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. Is France a developed country?

    Discover what qualifies France as a developed country and how its diverse economy has helped it become one of the largest ... Read Answer >>
  2. What is the difference between 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 >>
  3. Is Brazil a developed country?

    Understand why Brazil's low per capita gross domestic product; high birth and death rates; and subpar living conditions classify ... Read Answer >>
  4. Is Mexico a developed country?

    Understand what makes a country a developed country, and learn why Mexico is getting closer to developed status but is not ... Read Answer >>
  5. Is China a developed country?

    Understand why China, despite having the world's second-largest economy and third-largest military, is not yet classified ... Read Answer >>
  6. Is Chile a developed country?

    Learn how Chile became the first country in Latin America to be recognized as a developed country, and understand why the ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center