IADB PLANS TO MATCH 1986 LENDING LEVEL
The Inter-American Development Bank
said it intended this year to match the over three billion dlrs
it lent to Latin America in 1986, despite growing pressures on
its capital.
    In its annual report and in a briefing for reporters, the
Bank made it clear, however, that the Latin countries needed
vast amounts of new investment if they are to strengthen their
ailing economies in the period ahead. The report said Latin
America continued to emerge slowly from the deep recession that
began in the early 1980s, with Gross Domestic Product edging up
to nearly four pct from 3.5 pct in 1985.
    The report said the region's improved economic growth last
year was based on a rise in internal demand and fuller
utilization previously underused production capacity.
    "This situation will be difficult to duplicate in 1987 and
beyond because no significant new investments are being made,"
the report said.
    The Bank's lending last year consisted of 63 loans totaling
3.04 billion dlrs, bringing the agency's cumulative lending to
35.44 billion dlrs.
    Of last year's loans, 2.26 billion dlrs was actually
disbursed, bringing total disbursements to 24.03 billion dlrs.
    To assist in loan activities, the Bank said it borrowed
1.91 billion dlrs in the capital markets in 1986, bringing its
total outstanding borrowings to 12.11 billion dlrs.
    In a briefing for reporters, Bank President Antonio
Ortiz-Mena said that this year lending by the bank "will be at a
similar level to last year."
    He noted that bank lending in 1986 was directed
particularly to projects in energy, agriculture, and
environmental and public health, education and urban
development. The annual report was released as the Bank's
annual meeting is being held in Miami.
    Ortiz-Mena told reporters that the bank's member countries
will discuss a plan by the United States to reduce the loan
veto power from the current majority to 35 pct.
    Such a plan would allow the United States to block any loan
it did not like with the assistance of only one other country.
    The proposal, which is tied to any U.S. backing for a new
financing for the bank, is sure to run into rough going as the
Latin countries view it as a move by the Reagan administration
to control the agency's critical loans.
    The U.S. position is that it is not seeking veto power
although it believes the bank's largest contributors should
have greater influence within the institution.
   
 Reuter
