CAF closes 2020 with a historic record in loan approvals
The Development Bank of Latin America (CAF) approved in 2020 more than US $ 14,000 million in loans to countries in the region, most of which were to address the effects of the pandemic on the economy and health systems (nearly $4.5 billion) and to improve digital, land and energy infrastructures (more than $2 billion), among others. At the close of its 50th anniversary, the multilateral body accumulated more than $200 billion approved since 1970, to promote sustainable development and regional integration.
“CAF is an unconditional partner in the development of Latin America, and proof of this is the record of approvals we have carried out in a complicated year such as 2020,” . In addition to responding quickly and appropriately to the external financing needs caused by COVID-19, we have continued our support in key areas of development and are strengthening the institution to offer better technical and financial services to our member countries," said CAF Executive President Luis Carranza.
CAF's comprehensive action to support its member countries in confronting the pandemic was initially demonstrated in an agile and timely manner with non-reimbursable technical cooperation resources of up to US$400,000 per country; followed by the regional credit line for extreme weather events, earthquakes, polluting accidents and epidemics for US$340 million; and subsequently loans for US$4.1 billion from the regional contingent credit line for counter-cyclical support for the emergency generated by COVID-19.
In addition to these initiatives, support was provided to micro, small and medium-sized enterprises (MSMEs) with up to US$1.6 billion, through local development banks, to boost their internationalisation, innovation and productive integration, and thus promote formal employment and economic recovery in the region. In addition, as part of the economic recovery, the Board approved a US$1.2 billion facility called the Public Utility Support Programme, aimed at companies providing public services in the areas of electricity, gas and water, to meet the increased liquidity needs of borrowers generated by the pandemic.
In 2020, it was also approved to begin a process of strengthening the institution's assets, which will enable member countries to increase their credit capacity by between two and four times the capital contributed. At the same time, the incorporation of Mexico as a full member of CAF will allow it to have greater access to long-term financial resources, as well as technical cooperation for its sustainable development, among other benefits.