IADB eyes $80 billion capital increase to fill coffers

President of the Inter-American Development Bank Luis Alberto Moreno rides on a bicycle taxi in Changos, on the outskirts of Cancun March 18, 2010.

CANCUN, Mexico (Reuters) - Member countries of the Inter-American Development Bank could hand the regional lender a capital increase of $80 billion to replenish its coffers, Colombia's finance minister said on Saturday.

Representatives of member countries at an annual IADB meeting in the Mexican resort of Cancun are ironing out details of a proposal for members to put up the new capital and could finalize the agreement on Sunday, Colombian Finance Minister Oscar Zuluaga told reporters.

"It was well received. We still don't have a final resolution," said Zuluaga, who is chairman of the IADB's board of governors.

IADB President Luis Moreno has been courting members for more money by showcasing reforms he has pushed through to make the body, Latin America's biggest lender, more accountable and effective.

Following the global financial crisis, the bank approved a record $15.5 billion in funding, up more than a third over the previous year. Such aggressive lending has drained its resources and forced it to turn to shareholders for funds.

Moreno's fundraising has been complicated by overstretched budgets of rich countries whose economies were shaken by the crisis. Other development banks, such as the World Bank and African Development Bank, are also lobbying their member countries for funding.

Development challenges associated with climate change, social and economic inequality, and the need for better road and rail networks are also expected to fuel demand for lending.

(Reporting by Noel Randewich; Editing by Peter Cooney)