en.Wedoany.com Reported - The Inter-American Development Bank (IDB) and the Government of Canada have signed a guarantee agreement worth $200 million, aimed at unlocking up to $1 billion in new financing specifically to support critical minerals value chains and resilient infrastructure projects in Latin America and the Caribbean.

The agreement was signed by Ilan Goldfajn, President of the Inter-American Development Bank (IDB) Group, and Randeep Sarai, Canadian Secretary of State (International Development), in Guatemala City. Through this guarantee, the IDB will be able to expand its financing capacity while maintaining its financial strength and credit risk rating.

The guarantee will focus on two strategic areas. In the critical minerals sector, it will strengthen the IDB LAC Minerals initiative, a regional project aimed at developing the value chains of critical mineral resources in the region. Financing will be used to support expanding processing capacity, building infrastructure to add value to supply chains through responsible mining activities, and strengthening the region's connections with international markets.

In the area of resilient infrastructure, the guarantee aligns with the IDB Group's "Preparados y Resilientes en las Américas" initiative, aimed at enhancing countries' capacity to respond to and recover from natural disasters. Funds will be directed toward transportation, energy, water, and digital connectivity infrastructure to ensure the continuity of essential services during emergencies.

Randeep Sarai stated at the signing ceremony that the alliance between Canada and the IDB has spanned more than six decades, and the guarantee agreement signed will help promote sustainable development in Latin America and the Caribbean. He noted that by supporting critical minerals value chains and building climate-resilient infrastructure, both parties are investing in the region's future and a more stable and prosperous world.

The guarantee covers a portion of the IDB's sovereign-guaranteed exposure portfolio, helping the bank optimize its balance sheet and expand financing capacity without requiring additional capital from shareholders. The new resources will be specifically allocated to critical minerals and resilient infrastructure projects that meet the institution's environmental, social, integrity, and fiduciary standards.