Colombia assumes presidency of the IDB Board of Governors

“This year the economy will react, there will be an accounting rebound, but we need to forge reforms that allow us to enter the path of growth,” said the executive director of the Inter-American Development Bank. (BID) for Colombia and Peru, Sergio Díaz Granados.

Read here: The IDB will lend USD250 million for investments in Barranquilla

In an interview with THE HERALD, the executive said that these reforms should make spending and income more efficient and, in addition, stabilize the debt.

Díaz Granados is located in the capital of the Atlantic to take part in the events on the agenda of the IDB Assembly and the Colombia Circuit that unfold during this week. “It is the first time that we do the virtual Assembly,” he explained.

The executive affirmed that the arrival of the pandemic made the countries of Latin America and the Caribbean spend more than USD 480 million to face it, which is equivalent to 8% of the region’s GDP; however, this percentage is lower than that of developed countries, which on average allocated 19% of GDP for this.

According to economic measurements, 2020 was the worst year in Latin America in 200 years. That is why the IDB reaffirmed its work to accompany the countries to align with their reforms and recovery.

Read also: Asocapitales and the IDB announce resources for environmental projects

“The pandemic has led us to review what was being done and to include new pieces,” he added.

There are four lines in which the Bank will work and of which Colombia actively participate. The first is the delivery of a loan in pesos for a potable water system in La Guajira.

The second is the loan to a subnational government with a clear reactivation strategy such as the one delivered directly to Barranquilla for USD 250 million. “It is betting on the great challenge that is coming, which is climate change,” he said.

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