Development finance institutions join forces to help alleviate impact of COVID-19 in developing countries
The Development Finance Institutions (DFIs) of 16 OECD countries, grouped under the DFI Alliance, issued a joint statement where they commit to find solutions that will reduce the impact of COVID-19 in developing countries, especially on essential business activities, and help in the recovery. The group will work collaboratively to identify mechanisms designed to bring liquidity to the market, sustain companies, return them to full production, and restore employment opportunities.
Read the full statement below:
Development finance institutions responding to coronavirus pandemic
The Development Finance Institutions (DFIs) of 16 OECD countries, grouped under the DFI Alliance, are committed to working collaboratively to meet the unprecedented global demands resulting from the outbreak of COVID-19. This unparalleled health crisis will seriously impact developing countries in ways that will impede their economic and social progress. The ability of DFIs to mobilize significant financial resources and bring technical expertise to private sector enterprises in emerging and frontier markets will be more important than ever. The DFI Alliance members, through enhanced cooperation and the leveraging of pooled resources, will focus on reducing the impact of COVID-19 on essential business activities in these countries. Together, DFIs are working around the world to help resolve current liquidity issues in financial sectors, support the viability of existing companies impacted by the virus, and promote new investment in goods and services necessary to global health, safety, and economic sustainability. The DFI Alliance is developing mechanisms designed to sustain companies, return them to full production, and restore employment opportunities essential to the societies in which they operate. In addition, the DFI Alliance is identifying opportunities to finance the local private sector response to the health crisis with the goal of speeding recovery. These DFIs commit to working together to identify where needs in the private sector are greatest and to find solutions that will reduce the impact of COVID-19 around the world.
About the DFI Alliance
The U.S. International Development Finance Corporation (DFC), FinDev Canada, and the Association of European Development Finance Institutions (EDFI*), currently counting 15 “bilateral” member institutions within the field of development finance for the private sector in emerging and frontier markets, formed the “DFI Alliance” in 2019 as a framework for their active cooperative engagement. These DFIs all hold high standards for corporate governance, sustainability and impact management, and seek to act as role models for other investors.