IDFC Response to COVID-19 Crisis

In the unprecedented situation caused by COVID-19 crisis, IDFC is committed to regularly updating and capitalizing on its members respective experiences with regards to COVID-19. IDFC members are mobilizing their full set of instruments to simultaneously address short-term needs and prepare economic recovery.

Through extensive measures and systemic solutions to local financial systems, they ensure their countercyclical mandate. By providing financing facilities, guarantees, by massively realocating funding and by putting in place easing measures, they support most affected sectors and contribute to maintain jobs.

The Club is committed to help structure the most adequate collective answer, within the international development finance community, in order to strengthen health systems and social infrastructure and to support a sustainable and inclusive economic and financial recovery and transition. You can read the full press release. 

The information below related to the IDFC members measures and initiatives will be updated on a regular basis.


Individual Information & Recent Commitments by IDFC members in response to Covid-19

As of 11 June 2020

Agence Française de Développement (France)

Agence Française de Développement (AFD- French Development Agency) announces the launch of COVID-19 – Health in Common” – a € 1.2 billion initiative in response to the worldwide public health crisis caused by the COVID-19 pandemic. This initiative aims at both strengthening health systems in the short term, notably in Africa, and supporting sustainable and inclusive economic and financial recovery and transition in the longer term.

As part of its commitment to the “COVID-19 – Health in Common” initiative, AFD has announced that it will provide financial support for six new projects worth a total of €12 million. This support, which will initially focus on sub-Saharan Africa and countries in the Indian Ocean, responds to the urgent need for research, monitoring, testing, formulating effective health policies, and patient treatment. These different steps are vital for combating the spread of COVID-19 in Africa.

On May 12, 2020 the French Development Agency issued a press release to list all the initiatives developped since March to provide a multi-pronged response. It is translating into action the French Government’s commitment to support priority countries for France’s Official Development Assistance. Read more.

BancoEstado (Chile)

The Ministry of Finance announced an increase in the capital of BancoEstado of US$ 500 million to finance new working capital and alternatives for refinancing or postponing quotas for current debt for SME; for large companies, special financing for new working capital; and lastly for individuals, refinance of consumer loans, housing and credit cards and postpone current loan installments. Read more.

Bancoldex (Colombia)

Bancóldex first launched a Special line of credit “Colombia Responde” for COP $ 250,000 million (US$ 62 million) destined to sectors immediately impacted (public shows, tourism and aviation – and their respective supply chains). Seeking to further provide liquidity tools that help companies endure and preserve employment, designed an additional preferential credit solution “Colombia responde para todos” for COP $350,000 million (US$ 87 million) destined to all sectors (except agricultural and companies benefiting from the first line of credit). In addition, joining efforts with other national institution, anticipating the negative effects of COVID-19 on the activities of early stage companies, Bancóldex designed a preferential credit line for these entrepreneurs. Bancóldex is joining efforts with several local authorities to launch specific credit lines, Bogotá, Cucuta and Norte de Santander have been already benefited. Read more.

BICE (Argentina)

BICE launched a working capital loan for AR$ 1 billion (US$ 15 million). These loans are available for micro, small and medium-sized enterprises to finance short-term needs. Through its subsidiary BICE Fideicomisos trust, BICE is also in charge of managing an AR$ 30 billion (US$ 465 million) guarantee fund established by the government’s Productive Development Ministry in order to support the Central Bank’s overall lending policy. Read more. 

BNDES (Brazil)

BNDES foresees initial injection of BRL 55 billion (US$ 10.6 billion) in the economy, to make viable the activities of companies of all sectors. These initiatives will help companies face cash flow difficulties and maintain more than 2 million jobs. In addition, together with Brazilian Treasury, BNDES will make available BRL 40 billion (US$ 7.8 billion) to cover payroll expenses by small and medium-sized companies. The amount foreseen so far is almost the full year disbursements in 2019. Read more.

BOAD (West African Development Bank)

Regarding the support given to member states in the fight against COVID-19, BOAD has granted its member states XOF 120 billion in concessional loans (15 billion per State) to be disbursed immediately. The said loans are thereby softened through the interest subsidy mechanism replenished by BCEAO and the WAEMU Commission for XOF25 billion and XOF15 billion, respectively. In addition, BOAD has frozen debt repayment of about XOF76.6 billion (US$ 128 million) owed by member states for the remainder of the year, as a supporting effort in responding to the pandemic impact. Read more.

CABEI (Central American Bank for Economic Integration)

CABEI launched the Emergency Support and Preparedness Program for COVID-19 and economic reactivation of US$ 1.96 billion. The program aims to provide fast disbursing financial resources to its member countries to finance operations for the prevention, detection and treatment of COVID-19 and mitigation of its economic impact in the countries. Read more.

CAF (Development Bank of Latin America)

CAF makes available an Emergency Credit Line of rapid disbursement of up to US$ 2.5 billion, which will allow authorities to offer a rapid and timely response to mitigate the effects of COVID-19’s expansion, and contribute to the continuity of business operations and the recovery of economic growth. CAF also announces a contingent credit line of up to US$ 50 million per country that has been made available to shareholders to provide direct attention of public health systems. The authorities also have at their disposal non-reimbursable technical cooperation resources of up to US$ 400 thousand per country for initiatives related to this global situation. Read more.

CDB (China)

The significant actions taken by the CDB to fight the Covid-19 pandemic are shared and regularly updated on the institution official website.


COFIDE has set in motion a full range of products designed to respond to the current situation. COFIDE trust manages a special loan guarantee program for SMEs: “Fondo de Apoyo Empresarial” or FAE-MYPE amounting US$ 90 millionto help entrepreneurs under financial stress during the COVID-19 pandemic. In addition, “Fondo Crecer” a loan guarantee program, managed by COFIDE to increase the percentage of the guaranteed credit and relax the requisites for the financial institutions that deliver these loans. COFIDE is also supporting “Reactiva Peru”, which is the biggest national loan guarantee program ever applied: US$ 9,000 million to offer working capital loans to entrepreneurs’ and manages the Fund for Innovative Enterprises Initiative of an initial public endowment of US$ 20 million to invest in venture capital funds ultimately supporting startups. Read more.

CDP (Cassa depositi e prestiti – Italy)

CDP makes available funding of up to € 3 billion available to Italian banks for granting new loans to SMEs and Midcap companies through on-lending platform “Piattaforma Imprese”, with new pricing levels via the platform. In addition CDP provides up to 80% guarantee on new bank loans (up to €10 billion) to Italian companies with turnover of more than €50 million. Additional measures are: (i) a new 18-months liquidity line of up to 2 €/bn directly provided to medium and large companies, and (ii) a 1 €/bn loan in favour of the Italian bank UniCredit, to provide new loans to Italian SMEs and Mid-Caps. Flexibility of payment of the installments of the mortgages by local authorities and regions are also allowed. Lastly, CDP launched a €1 billion ‘COVID-19 Social Response Bond’ which will be used to finance either loans, project finance, equity investments or other tools in the following Eligible Categories: education, SMEs financing, social housing, energy and environmental sustainability. Read more.

HBOR (Croatia)

HBOR has put in place a series of measures including moratorium and rescheduling of existing loan obligations, working capital loans, and portfolio insurance policies, in cooperation with local commercial banks, for maintaining the level of economic activity, liquidity of economic operators and preserving jobs. Read more.

ICD (Islamic Corporation for the Development of the Private Sector)

ICD will provide US$ 250 million of emergency funding mainly in the form of medium to long-term financing instruments to help existing and new clients in the financial, agri-food, energy and other affected sectors. ICD will also be aiding the private healthcare industry of affected member countries to meet surging need for services, equipment and medicines. Further, ICD will work closely with 100+ local and regional financial institutions in its network to provide necessary support so they can continue to finance SMEs in affected sectors within the markets they operate. Read more.

JICA (Japan International Cooperation Agency) 

End of May 2020 JICA published a website dedicated to COVID-19 impacts and analysis in which JICA President KITAOKA delivered a video message for the people in the world coping with COVID-19 explaining JICA’s response to the COVID-19 crisis.

Moreover, on June 5, JICA, that gathered extensive information of the current situation and efforts against COVID-19 around the world including the voices of international organizations, experts and key government leaders, released a Quick Analysis and Urgent Commitment which states an outlook of the current situation of Japan and the world, comparative analysis of related factors to COVID-19 pandemics and JICA’s commitment based on the said information.

KfW Bankengruppe (Germany)

In March 2020, KfW launched a Covid-19 Special Programme available to small and medium-sized enterprises as well as large companies in Germany. The loan terms have been improved with lower interest rates, simplified risk assessment and a higher liability waiver by KfW. Read more 

As of 28 May 2020, demand for the special program reached  €47.5 billion, equivalent to about 54.000 requested  loans . KfW group furthermore introduced an additional equity facilities (through KfW Capital) and improved the loan condition of its student loan program (temporary 0 % interest rate with an extension of the program to foreign students in Germany).

PT SMI (Indonesia)

As a Special Mission Vehicle (SMV) under the Ministry of Finance (MoF) of Indonesia focusing on infrastructure financing, PT SMI is extending its Corporate Social Responsibility (CSR) measures amounting to IDR 2.1 billion or equivalent to US$ 134,000 to respond to the challenges brought about by the COVID-19 Pandemic. Read more.

TDB (Eastern and Southern African Trade and Development Bank)

TDB is embarking on special initiatives to help ensure continued access to finance for trade and development financing, with priority for medical supplies and other essential commodities in the new trade and development financing and guarantees of up to USD 2 billion expected in 2020. The Bank is also committing to mitigate the COVID-19 impact by providing targeted support to Member States with a focus on specific emergency medical supplies as part of a wider corporate social responsibility programme in collaboration with their partners. Read more. 

Moreover, on May 9th, 2020, as part of its Covid-19 Corporate Social Responsibility Programme, the Eastern and Southern African Trade and Development Bank (TDB) is donating 140,000 Made-in-Kenya masks to Kenyan healthcare workers in collaboration with Kenya’s Covid-19 Emergency Response Fund and Ministry of Health. Read more. 

TSKB (Turkey)

In fight against COVID-19 pandemic, the Central Bank of Republic of Turkey (CBRT) and the Banking Regulatory and Supervisory Authority (BRSA) are acting proactively to maintain and strengthen the conditions to well coordinate the banking sector in order to empower the requirements of production sector. Within these dynamics, TSKB is closely monitoring the loan market it has financed and its customers’ performance with the aim to support them during these extraordinary times. Along with its development banking mission, TSKB is currently in cooperation with its international stakeholders to design coherent measures that would meet the needs of the Turkish economy and mitigate the adverse consequences of the COVID-19 pandemic. TSKB is carefully considering its customers’ needs and trying to provide the appropriate services within its capacity. Moreover, the declaration for the internal precautions and measures of TSKB for an uninterrupted service quality is available on this link.

VEB.RF (Russia)

VEB.RF in close cooperation with the government applies a wide spectrum of measures to provide a prompt response to the challenges posed by coronavirus pandemic and as well as soften collateral damage to the economy. Among the key measures, VEB.RF provided Rubles 100 billion (US$ 1.36 billion) of guarantees to the biggest commercial banks and its own SME Bank in order to cover zero interest rate 6-months SME loans. Read more.




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