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Regional Development Banks
The regional development banks are modelled on the World Bank. Unlike the World Bank, however, the majority of the capital is held by the regional member states. Thus they also enjoy greater influence. Regional development banks, their special funds and special institutes finance only projects and programmes in member states in their region.
Their main goal is to fight poverty. They promote sustainable economic and social development in member countries. To this end, they provide loans and non-repayable grants for investments in the public sector and for private sector promotion. Regional development banks also meet foreign exchange needs arising in the wake of structural reforms of the economic and social sectors. In addition to various loans, they provide member states with technical assistance to help them implement their measures.
Regional banks raise funds on the capital market, which are guaranteed by the share capital of members. Funds also come from reserves built from surpluses and from the equity capital of the banks. Thanks to the liability accepted by member states, the banks can obtain low-interest loans on the market and can pass these on to members at only slightly higher rates.
The BMZ is primarily responsible for cooperation between the Federal Republic of Germany and the African Development Bank, the Inter-American Development Bank, the Asian Development Bank and the Caribbean Development Bank. The Federal Ministry of Finance is responsible for cooperation with the European Bank for Reconstruction and Development.
