Financial innovation and development effectiveness of Public Development Bank

preparation

The general objective is to strengthen financial innovation and development effectiveness of Public Development Banks (PDB). This will support PDB, a key actor for IDB operations through global credit lines, in optimizing their interventions to address market failures that limit financing to the private sector and will strengthen the institutional capacity of PDB to improve their development effectiveness frameworks (DEF). The specific objectives are: (i) Develop innovative financial instruments and risk mitigation methodologies, using guarantees and contingent financing lines; (ii) Strengthen development effectiveness of PDB, including in monitoring and evaluation, data generation, DEF, and demand assessments. Efforts will incorporate a focus on gender and diversity and climate action; and (iii) Support PDB regional networks, leveraging the knowledge and lessons learned they generate in terms of financial innovation and institutional strengthening. Networks include the Latin American Association of Development Financial Institutions (ALIDE), Finance in Common (FIC), Iberoamerican Guarantee Network (Regar), among others.