IDB Renews its Commitment to Support Migrant Host Countries

IDB pledges the availability of US$85 million in grants and expects to leverage US$1.1 billion in investment loans from 2020 and beyond

The Inter-American Development Bank announced today that it has renewed its commitment to support Latin American and Caribbean migrants and their host communities amid the COVID-19 pandemic.

At the Pledging Conference in Solidarity with Venezuelan Migrants and Refugees amid COVID-19 held virtually on May 26, 2020, the IDB announced the availability of grants and investment loans for 2020 and beyond to address the needs of the most vulnerable migrants and their host communities.

Venezuelan migration stands out as the most urgent migration issue in the region. More than 5.1 million Venezuelans have left their country. Of these, 4.3 million now live in other LAC countries compared to 140,000 in 2015.  Venezuelan migration is characterized not only for its unparalleled magnitude and staggering pace, but also for the increasingly deteriorating health and economic vulnerability of its migrants.

The COVID-19 fueled health and economic crises complicates the situation of Venezuelan migration host countries that are striving to provide migrants with health care, clean water and sanitation to practice the recommended hygiene, safe shelter, prevent evictions and ensuring education for children and youth.

“We need to address this humanitarian and development challenge that we are facing and support the most affected countries”, said Luis Alberto Moreno, IDB President. Moreno added that the IDB took the extraordinary  step to request its Governors in 2019 the use of our own resources from IDB’s Grant Facility to leverage our investment loans and donor funding because we expected the needs of migrant host countries would continue to grow”.

At the Conference, Donors’ total pledges totaled 2,544 million euros, of which 595 million euros were grants. For the IDB, Moreno announced the availability of US$85 million in IDB grants for migrant host countries, which the IDB expects to leverage with US$1.1 billion in investment loans, additional donor grants and co-financing from 2020 and beyond. Such a non-reimbursable effort is part of the Facility of up to US$100 million authorized by IDB Governors in 2019.

In 2019, the IDB used its own and donor grants to leverage loans to provide migrants and their host communities with access to social protection, health, especially pregnant women and minors, education and the strengthening of inclusive employment policies in Ecuador and Colombia.  Moreno closed his remarks by thanking Spain and the European Union for organizing the Conference and the European Union, Finland, Germany, Japan, Korea, Spain, Switzerland and the United States for channeling grant resources through the IDB to collectively increase our impact and address this emerging development challenge.

If you are interested in what the IDB is doing to help migrants and their host communities, check it out here. Are you interested in how the IDB supports countries address the COVID-19 pandemic?