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The US will not nominate another country candidate for the IDB, says Treasury

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The Joe Biden administration will not nominate a US candidate to head the Inter-American Development Bank (IDB) following the ouster of Mauricio Claver-Carone this week over an ethics scandal, a Treasury spokesman told Reuters.

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Claver-Caronethe first American to lead the bank in its 62-year history, was nominated in 2020 by former President Donald Trump, overturning an unwritten understanding that the president of Latin America’s largest development bank would come from a borrowing country of the region.

We will return to the understanding of governance that the previous administration destroyed by welcoming candidates from borrowing member countries to compete for the presidency”, said the spokesman for the Treasure, michael kikukawa. “The Biden administration will not present an American candidate”.

The United States controls 30% of the bank’s voting shares, its largest shareholder by far.

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The board of governors of IDB voted Monday to fire his Cuban-American boss after an independent investigation showed he had a relationship with a female subordinate and acted to give her pay raises totaling more than 45% of base salary in less than a year.

Claver-Carone He denied in an interview with Reuters on Monday that he had an intimate relationship with the employee and said he was planning legal action against the bank.

Headquartered in Washington, the IDB is a reference investor in Latin America and the Caribbean, providing US$23.4 billion in financing and other financial commitments in 2021.

President Joe Biden promised”revitalize” the institutions of the western hemisphere such as the IDBand sees the bank as a go-to player in responding to high inflation and sluggish growth exacerbated by Russia’s invasion of Ukraine, while working for more transparent lending in the region, US officials say.

The administration Biden he wants the bank to quickly overcome the leadership crisis and help lead efforts for greater economic cooperation with Latin America and the Caribbean.

The Treasury said it will seek candidates who fully support reforms aimed at leveraging private sector investment to create more jobs and bolster confidence in democracies in the region, while also addressing climate change.

According to the formal selection process for a new president launched on Wednesday, the governors of the IDB they can nominate candidates within the next 45 days.

Source: Gestion

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