Presidents Letter of Transmittal
TO: CHAIRMAN OF THE BOARD OF GOVERNORS,
INTER-AMERICAN INVESTMENT CORPORATION (IDB INVEST)
Pursuant to the provisions of the agreement establishing the Inter-American Investment Corporation, whose brand is IDB Invest, I am pleased to present the Annual Report for the year 2020, along with the financial statements for the years ended December 31, 2020 and 2019.
This report provides the corporate and operational results of 2020, containing a summary of IDB Invest’s main achievements and key milestones for 2020, a year marked by the devastation caused by the COVID-19 pandemic.
Latin America and the Caribbean have been disproportionately ravaged by COVID-19. Experts predict the pandemic could set the region back 10 years economically and socially. A strong, speedy and more inclusive recovery will require a revitalized private sector, with businesses capable of bouncing back into production, creating jobs and generating new opportunities through innovation and a vision to build back better. Under its expanded mandate, IDB Invest is uniquely equipped to assist LAC businesses in meeting this critical challenge.
Shortly after the first cases of coronavirus were reported in the region, IDB Invest moved swiftly to prepare for the looming crisis. Backed by the Board of Executive Directors, it significantly expanded its lending capacity and set itself ambitious goals for mobilizing additional resources from third parties. In addition, it established a set of criteria that every new operation would have to fulfill: alleviating the impacts of the pandemic, protecting critical businesses, and reigniting economic activity. And, even as it played a countercyclical role, it would not lose sight of its long-term financial sustainability.
The year-end results show that IDB Invest surpassed its targets, overcoming unprecedented challenges. Commitments totaled US$6.2 billion, while core mobilization reached US$2.3 billion. It closed 2020 with a combined portfolio of US$16.1 billion in development assets under management. Once again, IDB Invest proved why it is the multilateral partner of choice for LAC’s private sector.
As the new president of the IDB and Chairman of the Board of Executive Directors of IDB Invest and of the Donors Committee of IDB Lab, I am committed to strengthening the IDB Group’s capacity to promote development through the private sector, which is poised to become the engine for the recovery in Latin America and the Caribbean. Working together with our clients and partners, we will help the region emerge stronger and achieve its potential for prosperity, serving our ultimate mission of improving lives.
Chairman, Board of Executive Directors Inter-American Investment Corporation (IDB Invest)