On May 14, $88.3 million of Venezuela-guaranteed debt held by IADB fell into arrears by more than 180 days, moving the country to non-accrual status, as per IADB policy.
Venezuela's payments to IADB totaled $151 million in 2017 and 2018, signaling its continued willingness to pay despite its inability to meet its obligations in full.
"Today is a historic moment for the OAS and the inter-American system," said Secretary General Jose Miguel Insulza, noting that the statutes adopted by the General Assembly put to rest any ambiguities and make it clear that the IADB responds to the civilian democratic authority represented by the OAS political bodies.
Ambassador Esteban Tomic of Chile, who chaired the special session, recalled that the IADB had been formally established in the same historic hall sixty-four years earlier, just three months after the Japanese attack on Pearl Harbor.
Following World War II, the Gold War created tensions and divisions that often sent the IADB and the OAS on divergent paths, Tomic said.
In 2002, the OAS General Assembly instructed the Permanent Council to begin seeking consensus on the role of the IADB and its relationship with the OAS, keeping in mind the principles of civilian oversight and the "democratic formation of its authorities." Ambassador Paul Durand of Canada and Ambassador Tomic co-chaired the group that began work on this initiative.
Fitch's latest projection assumed a tripling of IADB's impaired loan ratio of 0.5% at YE17, assuming limited recovery of the Venezuelan exposure over the rating horizon.
IADB's impaired loans have historically been stable, ranging from 0.4% to 0.6% of total loans since 2013 and consisting entirely of credits to the private sector.
and Banco Itau Europa (NYSE: ITU) were global coordinators and joint bookrunners responsible for the syndication process, while Banco do Brasil (BBAS3.BR), HSBC Holdings (LSE: HSBA) (NYSE: HBC) (HKG: 0005) and Standard Bank (JNB: SBK) have acted as joint book-runners in the transaction.
is rated triple-A by the three major ratings agencies.
can't set the precedent that an infrastructure project which complies with all the requirements be held ransom by some radical environmental groups."