The Inter-American Development Bank (IDB) has approved a $500 million loan that will support reforms of Colombia’s financial system and contribute to the economic growth of the country.
The reforms are designed to promote an increase in financing for productive development, expand the financial inclusion of people and micro, small and medium enterprises that do not have access to banks; strengthen the regulation, supervision and transparency of the financial system; and develop the capital market.
The funds will improve access to credit by companies, especially small and medium sized enterprises, and allow infrastructure financing by public-private partnerships through the development of capital markets and the Latin America Integrated Market, as part of the Pacific Alliance.
They will also increase public trust, by improving the standards for regulating and supervising the financial system expanding access to banks so that people can use bank services and thereby reduce the vulnerability of their home economies.
This operation is carried out at as a Programmatic Loan in Support of Policy Reforms, a quick-disbursement facility designed to lend budgetary support to priority reforms in IDB member nations.
The IDB loan will be disbursed over a one-year period. It has a grace period of 12 years, 8 months, and an interest rate based on LIBOR.