The Inter-American Development Bank (IDB), a US-based development finance institution, recently approved a 24-year loan of USD 40 million to the nation of Panama. The loan, co-funded with USD 3 million from the government of Panama, is to be used for projects addressing the needs of for-profit businesses and other organizations run by indigenous people, including those that improve access to financial services and infrastructure. The individual project plans are based on the National Plan of Indigenous Peoples (sometimes referred to by its Spanish acronym PNDIPI), which was established by the government of Panama following consultation with indigenous leaders in the country. It is expected that “the number of business people who could benefit from [the] program is about 1,400 [and that] 44,178 households… will also see a positive impact from the program.”
IDB is a development finance institution that was founded in 1959 and has 48 member countries, including 26 countries in Latin America and the Caribbean. It works with governments, companies and NGOs to finance sectors such as financial services, health, education, renewable energy, transportation and telecommunications with the aim of promoting “social inclusion and inequality, productivity and innovation, and economic integration.” It also provides technical assistance and research in these areas. During 2018, IDB disbursed loans totaling USD 11.3 billion and had USD 93.4 billion in loans outstanding.
By Jolene Khor, Research Associate
Sources and Additional Resources
IDB press release
https://www.iadb.org/en/news/nearly-1400-indigenous-entrepreneurs-panama-boost-revenue-support-idb
IDB 2018 Annual Report
https://publications.iadb.org/en/inter-american-development-bank-annual-report-2018-year-review
PNDIPI overview
https://www.undp.org/content/dam/panama/docs/documentos/undp_pa_final_plan_desarrollo_pueblos_indigenas.pdf
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