IDB supports social security in Colombia

IDB supports social security in Colombia

Loans Economy & Policy Debt Colombia Andean Barbados Caribbean United States Coronavirus ESG

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The Inter-American Development Bank (IDB) said it granted $162 million in financing to support the social security system and increase  healthcare services for immigrants in Colombia.

According to the IDB, the COVID-19 pandemic and demographic changes present risks the "economic stability" of Colombia's social security system. The system also faces limited financing for new technologies and is not reaching immigrants who get healthcare through emergency rooms, the IDB said in a press release on Wednesday.

The financing includes a 14.7-year loan for $150 million and an $11.8 million grant for healthcare services for immigrants with $9.6 million from the IDB and $2.2 million from the German government. The World Bank has chipped in with another $150 million in financing, the IDB said.

The US-based development bank also said in a press release on Thursday that it had supplied an $8 million loan to Colombia's export-import bank Bancóldex as part of a $600 million credit line for renewable energy projects and the creative industries. The 20-year loan has a 10.5-year grace period and charges a fixed rate of 0.75% per year. It comes with $8 million in matching funds from Bancóldex, according to the IDB.

The IDB said in a separate press release on Thursday that it approved a $120 million loan to reactivate the economy in Barbados during the COVID-19 pandemic. The 20-year loan comes with a grace period of 5.5 years and marks the first stage of a two-part program in response to the pandemic in the Caribbean island nation.