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dc.titleRisk Mitigation Mechanisms for Local Investment: The Role of Subnational Development Banks
dc.contributor.authorMartínez Álvarez, Juan
dc.contributor.authorOrtega Andrade, Adrián
dc.contributor.authorCorbella, Montserrat
dc.contributor.orgunitConnectivity, Markets and Finance Division
dc.coverageLatin America and the Caribbean
dc.date.available2024-05-09T00:05:00
dc.date.issue2024-05-09T00:05:00
dc.description.abstractSubnational development banks (SDBs) in Latin America and the Caribbean (LAC) provide financing to regional and local governments, subnational entities, and small and medium enterprises (SMEs), but generally lack information about how they can support the transition toward net-zero greenhouse gas emissions and environmental sustainability. This document describes how SDBs can support blended financing arrangements that combine both public and private resources, leveraging their comparative advantage in mitigating the high risks that private lenders perceive of working with actors at the subnational level. The document provides illustrative cases from both regional and international contexts of how public development banks can mobilize private capital for local economic development. It concludes with strategic recommendations for SDBs to increase sustainable financing for a just urban and territorial transition and for the Alliance of Subnational Development Banks in Latin America and the Caribbean as a platform to foster a regional dialogue that can increase financial innovation across the region.
dc.format.extent31
dc.identifier.doihttp://dx.doi.org/10.18235/0012958
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Risk-Mitigation-Mechanisms-for-Local-Investment-The-Role-of-Subnational-Development-Banks.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectFinance
dc.subjectSmall Business
dc.subjectCredit Risk
dc.subjectSustainable Infrastructure
dc.subjectSustainable Development
dc.subjectMunicipal Government
dc.subjectDevelopment Bank
dc.subjectInvestment
dc.subjectCredit Line
dc.subject.jelcodeO16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance
dc.subject.jelcodeO18 - Urban, Rural, Regional, and Transportation Analysis • Housing • Infrastructure
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordssubnational development banks;credit risk mitigation;private sector mobilization;just urban and territorial transition
dc.typeLearning Materials
idb.identifier.pubnumberIDB-LM-00658
idb.operationRG-T3613
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