Regional development bank sees obstacles to link with Cuba

Regional development bank sees obstacles to link with Cuba
Published March 19, 2015 EFE
By Alfonso Fernandez

Hailing the normalization of ties between Havana and Washington,
Inter-American Development Bank chief Luis Alberto Moreno said Thursday
that "some obstacles" stand in the way of the IDB's establishing a
direct relationship with Cuba.

"Without a doubt it is great news that a page has been turned on what
was a very tense relationship between the United States and Cuba,"
Moreno told Efe in an interview at IDB headquarters a week ahead of the
bank's Annual Assembly, to be held this year in South Korea.

"That said, for us to have a direct activity with Cuba via loans, some
obstacles must be resolved," he said, adding that Cuba would have to
resume full participation in the Organization of American States to
become part of IDB.

He expressed optimism that "with the passing of time (these obstacles)
will be solved," even though Cuba, which was suspended from the OAS in
1962, shows no interest in returning to the regional organization,
despite the 2009 revocation of Havana's suspension.

Moreno, who has led the bank since 2005, said the focus of the March
26-29 meeting in Busan, South Korea's second city, will be on
strengthening relations between Asia and Latin America on the 10th
anniversary of South Korea's joining the bank as a stockholder.

"Not only trade, also investment between Asia and Latin America, has
grown geometrically in this period," he said.

Chinese purchases of Latin America commodities represent a substantial
share of the burgeoning relationship.

"Latin American investment in China remains small, but there is a whole
history of much activity in other areas of Asia, such as Japan and the
Philippines, where there exists an important Latin American presence,"
Moreno said.

The IDB assembly in Busan, he said, will include a "business summit"
designed "to nurture and strengthen those (Latin American-Asian) links
not only on the part of governments, but also from the private sector."

One of the main issues at the Busan discussions will be steps to
increase the IDB's partnership with the private sector.

The 2013 and 2014 annual assemblies produced outlines to restructure the
IDB branch that finances private sector projects, but yet to be defined
are where the new capital will come from and how the resources will be
managed.

In 2014, IDB extended $13 billion in loans to regional governments for
development projects, while resources channeled to the private sector
topped $2.8 billion.

Founded in 1959, the Washington-based IDB has 48 member countries and
its stated mission is to promote economic growth and poverty reduction
in Latin America and the Caribbean. EFE

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