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Organization and groups involved in PSD
- Private Sector Department (PRI): charged
with mobilizing private financing for infrastructure
and developing capital markets for financial stability
- Earmarks up to 10% of annual lending for PRI
projects
- Promotes cooperation between public and private
sector
- Multilateral Investment Fund (MIF): independent
fund managed by IDB to promote PSD on grassroots level
- Provides loans, grants, equity investment in
microfinance industry
- supports small business innovation, mechanisms
to improve market efficiency and transparency,
and training
- Inter-American Investment Corporation (IIC):
independent affiliate of IDB Group – provides
loans, grants and equity investment in wide array
of private projects, preferably in SMEs
- Key personnel: Carlos N. Guimaraes –
Private Sector Coordinator, coordinates the three
groups
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Key interventions
- Financial interventions (with and without sovereign
guarantees), including loans, equity, quasi-equity,
and on-lending to MSMEs
- Fee-based advisory services, e.g., restructuring,
financial engineering, searches for joint partners
- TA, including on public sector reform, promoting
regional trade and integration, and supporting SMEs
Related work
- Competitiveness Strategy is also a key part
of PSD work. Main elements are:
- Strengthening legal and institutional framework
in which financial systems operate
- Developing financial regulatory agencies
- Strengthening capital markets
- Strengthening property rights over assets
- Developing microfinance systems and other alternative
institutions to expand access to credit
Key documents
- Private Sector Development Strategy (Jan 2004)
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