IDB Business Seminar Capital Markets for Development June 4, 2004 Financial Markets Development Instruments Private Sector Department

Overview Objectives Eligibility Criteria Basic Instruments Strategic Focus Areas: –Capital Markets –Trade Finance –Financial Institutions

Objectives Promote competitiveness of LAC financial markets Support deepening and integration of LAC capital markets Reduce volatility of international capital flows

Eligibility Criteria Development Impact and Additionality Complement, not compete with market participants Issuer/Borrower Compliance with Environmental/Social and Corporate Governance Use of Proceeds

Basic Instruments Funding Vehicles: –Traditional A/B loans –Straight IDB loans Stand-by Support: –Partial Credit Guarantees –Political Risk Guarantees

Capital Markets Products Credit Enhancements for: –Securitization of assets and future flow of receivables –Corporate and utility bond placements –Other structured finance securities Funding for: –Liquidity facilities –Warehousing facilities –Other vehicles

Trade Finance Products Regional Trade Facilitation Program Credit lines to local banks (A/B loans) Credit lines to intl. funds active in LAC trade finance Bank portfolio credit risk enhancement programs (PCGs) Export Receivables Securitization

Financial Institutions Credit lines for on-lending to infrastructure Guarantees for issuance of capital market funding instruments Guarantees for local and cross border risk management

Questions? For Inquiries please contact: Hans Schulz Head of Operations Group I Private Sector Department Ph: (202)