Responses of Latin American Development Banks to the Economic Crisis by the Covid 19 in Particular in Agricultural and SMEs Sectors

Even with more knowledge of the economic effects, the international crisis caused by the COVID-19 pandemic showed an uncertain picture at the beginning. It was estimated that it will be much greater than the 2008 crisis and a little less than the great depression of 1929. In that context, the Latin American governments announced a series of policies, compensatory programs and subsidies for addressing it. Some were based on broadening or refocusing budgets, while others favored accepting new debt, suspending foreign and domestic debt payments; monetary issue; and programs to support production sectors and/ or programs that protect enterprises and the population at large, particularly the most vulnerable sectors. In the implementation of many of these measures, development banks were an important instrument of public policy.

The measures taken by the development banks were for the most part in line with government stipulations and focus on the smallest production units. However, given the nature of this unprecedented crisis, the health sector was given significant attention, unlike the case in past crises; this means the enterprises or institutions that provided health services and companies that produced health supplies, as well as technological solutions for monitoring and controlling COVID-19.

This paper, led by the Latin American Association of Development Financing Institutions (ALIDE) focuses on on the measures, actions and the role of public development banks, particularly in the agricultural and micro, small and medium-sized enterprise sectors, during the covid 19 crisis.