IDB Overhauls Lending Rules to Speed Up Investment and Disaster Response

The Inter-American Development Bank (IDB) has approved a new Unified Investment Lending Policy (UIP) designed to deploy development financing faster, more flexibly, and with clearer links to results, marking a major overhaul of how the Bank supports investment across Latin America and the Caribbean.

The reform streamlines the IDB's investment lending instruments—covering loans, grants and guarantees—into a simpler framework while introducing new financing modalities aimed at boosting resilience, scaling proven solutions and supporting long-term regional initiatives.

"This reform gives our borrowing members faster access to financing when they need it most and more flexibility to scale what works," said IDB Group President Ilan Goldfajn. "It allows us to combine instruments more effectively, work better with partners, and deliver impact at greater scale."

Faster Financing, Clearer Results

At the core of the UIP is an expansion of results-based financing, where disbursements are tied to the achievement of pre-agreed outcomes rather than inputs alone. Under the new policy, countries can apply this approach to a wider range of investments and rapidly expand projects that have already demonstrated impact.

The streamlined framework also makes it easier to scale successful programs and finance long-term efforts addressing shared regional challenges such as cross-border infrastructure and regional integration.

New Tools for Disaster Preparedness and Recovery

To strengthen disaster-risk management and speed up response, the IDB is introducing two new emergency financing instruments:

• Investment Financing with Deferred Drawdown Option, allowing countries to secure funding in advance and access it immediately after a natural disaster

• Post-Emergency Financing, providing rapid funding once a disaster occurs to support recovery and reconstruction

These tools are designed to help countries move more quickly from crisis to recovery, reducing economic and social disruption.

More Flexible, Long-Term Programming

The UIP also revamps the IDB's Conditional Credit Lines for Integrated Projects, enabling countries to combine policy-based loans, investment financing and technical assistance under a single, coherent strategy of up to 10 years. A more flexible revolving credit line will further support project preparation and execution.

Aligned with Global Best Practice

The new policy aligns the IDB's investment lending framework with its 2024–2030 Institutional Strategy and brings its practices closer to those of other multilateral development banks, reinforcing interoperability and partnership.

Call to Action: Scale What Works, Respond Faster

For borrowing countries, development partners and investors, the UIP opens the door to faster deployment, smarter scaling and stronger disaster readiness. Early adoption will be key to maximizing impact—especially in regions facing rising climate risks and urgent infrastructure needs.

As the IDB moves to implement the new policy, the message is clear: speed, flexibility and results now define the next generation of development finance.