Austria Backs IDB Cities Push as Bank Hits Record $35bn Financing

Austria has been a long-standing partner in urban development, and the new funding nearly doubles its total support for IDB urban and subnational initiatives since 2019.

The Inter-American Development Bank Group (IDB Group) has concluded its annual consultations with non-regional member countries in Vienna, highlighting record financing levels, reform momentum, and growing international support ahead of its Annual Meetings in Paraguay on 11–14 March 2026.

A key outcome of the consultations was Austria’s announcement of a $2 million contribution to the IDB for Cities and Regions program, making it the first donor to the initiative. Austria has been a long-standing partner in urban development, and the new funding nearly doubles its total support for IDB urban and subnational initiatives since 2019.

Launched in 2025, the IDB for Cities and Regions initiative supports cities across Latin America and the Caribbean through direct financing, technical assistance and credit-enhancement tools. The program focuses on helping cities prepare bankable projects, strengthen fiscal and institutional capacity, and mobilise capital for urban services, infrastructure and climate resilience.

Record year and reform momentum

The Vienna consultations reviewed the IDB Group’s 2025 performance, a year that delivered record scale and impact. Total financing reached $35 billion, including $20 billion in public-sector operations—the highest level since 2019—and a record $13 billion in private-sector commitments.

Discussions also centred on the Bank’s shift from vision to execution, including reforms to modernise lending policies, as well as priorities for 2026. These include advancing a critical minerals framework, strengthening ties between the region and non-regional partners, and supporting countries undergoing economic transition.

“Last year was a record year — highest ever financing, stronger quality and impact, and unprecedented external recognition,” said IDB Group President Ilan Goldfajn. “We are now moving from vision to action on reforms, focusing on execution and implementation as we look ahead to priorities such as critical minerals, Mercosur–EU relations, and economic transitions. Austria’s leadership as the first donor to the Cities and Regions program highlights the growing importance of subnational development.”

Global recognition and new partnerships

In 2025, the IDB Group received multiple international awards, including LatinFinance’s MDB of the Year, BlueMark verification of IDB Invest’s impact framework, and Environmental Finance Sustainable Debt Awards for debt-for-nature transactions in Ecuador and The Bahamas, alongside several infrastructure and bond-financing honours.

On the margins of the consultations, the IDB Group—together with Austria’s Federal Ministry of Finance and Advantage Austria—will launch BID for the Americas in Austria. The initiative connects Austrian firms and investors with projects in Latin America and the Caribbean, initially focusing on energy transmission, digital infrastructure and logistics.

In a parallel event, IDB Lab will host a high-level dialogue in partnership with Zero Project, bringing together government representatives and non-regional governors to explore financing models and public–private partnerships that expand access to jobs, services and mobility for persons with disabilities.

The Vienna consultations underscored the IDB Group’s growing role as a platform linking regional priorities with global partners, as it prepares for its 2026 Annual Meetings in Paraguay.