CAF approves USD 1.65 billion to boost the reactivation of Latin America and the Caribbean and advances in its equity strengthening
CAF -development bank of Latin America- consolidates its position as an unconditional ally of the economic and social reactivation of the region with the approval of seven operations for a total amount of USD 1.65 billion that will benefit millions of inhabitants of Argentina, Brazil, Paraguay, Peru, and Trinidad and Tobago, in strategic sectors such as social development, water and sanitation, energy, digital transformation, and budget support, among others.
"Improving the quality of life of the people with better access to basic services such as water and natural gas, the Argentina National Program against Hunger, the promotion of digital transformation, and support for the actions of the governments of Paraguay and Peru to promote economic and social reactivation with resources in an agile and timely manner, are an example of the commitment of CAF's Board and management to offer timely responses in line with the challenges facing the region," said Sergio Díaz-Granados, Executive President of the Institution.
The operations approved at the CLXXV session of the Board of Directors held in Panama City, in the framework of the celebration of the 25th anniversary of Panama's accession to CAF, are the following:
- CAF continues to promote economic, environmental and social recovery in Argentina with USD 440 million.
- CAF approves the increase of the revolving credit line of the regional bank BRDE in Brazil to USD 140 million.
- CAF approves USD 300 million to support sustainable development in Paraguay.
- CAF approves USD 650 million to support Peru's sustainable reactivation and energy transition.
- CAF approves USD 120 million to support Trinidad and Tobago's digital transformation.
At the end of the Board meeting, the ordinary capital share subscription agreements were signed to advance in the materialisation of the new USD 7 billion capitalisation approved by the Shareholders' Meeting in March. The shareholder countries of Argentina, Bolivia, Colombia, Ecuador, Panama, Paraguay, Trinidad and Tobago; together with the private banks BISA and Banco Mercantil Santa Cruz of Bolivia, Banco Guayaquil and Banco del Pacífico of Ecuador.
"With the support of CAF's shareholders, both countries and private banks, we are moving forward with the renewed agenda to be the Green Bank, for economic reactivation and regional integration. Both with the entry of new countries as full members and with this capital increase, we are strengthening ourselves to provide comprehensive solutions to overcome the obstacles we face and generate opportunities that improve the quality of life of Latin Americans and Caribbean people," added Díaz-Granados.
In addition, as part of the activities to commemorate the 25th anniversary of Panama's incorporation as a CAF shareholder, agreements were signed to subscribe ordinary capital shares for Chile and Costa Rica to become full members, while Honduras became the twenty-first CAF country to become a direct member.
CAF's mission is to promote sustainable development and regional integration by financing public and private sector projects, providing technical cooperation and other specialised services. Established in 1970 and currently comprising 20 countries - 18 from Latin America and the Caribbean, together with Spain and Portugal - and 13 private banks, it is one of the main sources of multilateral financing and an important generator of knowledge for the region.
