Press Release

OFID signs Memorandum of Understanding with Inter-American Development Bank
Memorandum to Foster a Strategic Partnership

44/2006 May 16, 2006, Vienna, Austria
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On the occasion of the 4th Summit of Heads of State and Government of the European Union, Latin America and the Caribbean, which was held in Vienna last week, a Memorandum of Understanding (MoU) has been concluded between the OPEC Fund for International Development (OFID) and the Inter-American Development Bank (IDB). Signed by Mr. Suleiman J. Al-Herbish, Director-General of OFID, and Mr. Luis Alberto Moreno, President of IDB, the MoU aims at reinforcing the existing strategic partnership between OFID and the IDB for their active cooperation in development matters in Latin America and the Caribbean.

IDB and OFID share a number of projects in key sectors in the region. They took stock of their cooperation of almost thirty years and noted common concerns and vision. They agreed that cooperation between them and harmonization of their approaches to development in Latin America and the Caribbean would enhance their efficiency and add value to the support they extend to their partner countries. They agreed in there being ample scope for enhanced operations and set objectives in this respect. The MoU will provide a framework for future cooperation and facilitate communication at all organizational levels of both institutions. OFID and IDB renewed their commitment to supporting the development of the region in priority sectors of the countries’ choice.

The IDB, one of the largest and oldest regional development banks in the world, was established in 1959. It is the main source of multilateral financing for economic, social and institutional development projects, as well as trade and regional integration programs in Latin America and the Caribbean.

OFID was established in 1976 to promote cooperation between OPEC member countries and other developing countries as an expression of South-South solidarity. It is mandated to extend concessional financial assistance in the form of loans for development projects and programs and for balance of payments support; to provide grants in support of technical assistance, food aid, research and similar activities, and emergency relief; to participate in the financing of private sector activities in developing countries; and to contribute to the resources of other development institutions whose work benefits developing countries.

By the end of March 2006, the level of cumulative financing extended by OFID had reached US$7.9 billion, benefiting 119 developing countries.