The World Bank Group and Inter-American Development Bank Join Forces on New Full Mutual Reliance Framework

WASHINGTON – The World Bank (WB) and the Inter-American Development Bank (IDB) have agreed on a new co-financing partnership framework designed to make development finance in Latin America and the Caribbean faster, simpler, and more effective. This builds on the longstanding collaboration between the two institutions, including partnerships that boost innovation in the Amazon region, a global collaborative co-financing platform, and mutual reliance in procurement for jointly financed investment projects. The Full Mutual Reliance Framework (FMRF) will allow client countries to apply a single set of operational policies – the ones of the lead lender – to selected projects co-financed by the IDB and the World Bank. By reducing duplication, lowering transaction costs, and streamlining processes, the framework will help countries move from preparation to implementation with greater speed and better development outcomes, including in Small States and Fragile, Conflict-Affected, and Vulnerable (FCV) countries. This new partnership builds on the groundbreaking full mutual reliance framework we launched with the Asian Development Bank in 2025. Both agreements deepen the partnership between Multilateral Development Banks (MDBs) and answer the international community's call for MDBs to operate as a system—one that delivers greater impact and tackles pressing development challenges quickly and efficiently. As implementation moves forward, the IDB and the World Bank will engage with client countries and stakeholders to identify new co-financing opportunities.