IDB Group Eyes $500B Latin America Loan Pool for Global Investment

The Inter-American Development Bank (IDB) Group has announced ReInvest+, a new initiative designed to attract private capital to Latin America, according to a Reuters report. This strategy focuses on transforming existing regional local loans, valued at up to $500 billion, into globally investable assets. Instead of originating new loans, ReInvest+ aims to enhance the attractiveness of performing loans currently held by local banks. This will be achieved by mitigating risks through the provision of political and foreign exchange risk insurance, effectively converting these assets into investment-grade, hard-currency securities. This approach is specifically tailored to appeal to institutional investors who typically avoid unrated, local-currency investments. ReInvest+, a partnership with Brazil's COP30 presidency, will leverage the IDB's role as a trusted intermediary, establishing criteria and providing support throughout the transition process. The IDB is currently soliciting proposals from commercial and international banks to participate in the program.