CAF expands its presence in Chile and approves $1.297 billion to support social reactivation in five countries in the region

For the first time in the 55 years since the founding of CAF -development bank of Latin America-, its Board of Directors and General Assembly, made up of the Ministers of Economy and Finance, Presidents of Central Banks and high economic authorities of the shareholder countries, was held in Santiago de Chile, as part of the activities carried out by the multilateral organisation to strengthen its presence, after the country rejoined as a full member of the institution. 

In the CLXXVII session of CAF's Board of Directors, credits for 1,297 million dollars were approved for Argentina, Chile, Panama, Paraguay and Uruguay, in strategic sectors such as energy, infrastructure, education, agro-exports, inclusion and sustainable mobility, among others. 

"The return of Chile as a full member of CAF is historic for Latin America and the Caribbean because it occurs in a social and economic context in which an active role of the multilateral bank is most needed, and also coincides with CAF's best moment in terms of financial strength, risk ratings and technical expertise to support the public and private sector in Chile and other countries to promote economic and social reactivation and to be the green bank of Latin America and the Caribbean," said Sergio Diaz-Granados, CAF's Executive President. 

These were the operations approved by CAF's Board of Directors: 

• CAF approved loans for $840 million to boost the energy transition and the social model of disability in Argentina 
• CAF approves extension of credit line to Banco del Estado de Chile to support social development and employment generation. 
• CAF will allocate $122 million to boost electric mobility in Panama, Paraguay and Uruguay 
• CAF supports local and regional integration in Paraguay with the financing of a $135 million road programme. 

At the end of the Board meeting, Banco Davivienda signed an agreement for the subscription of ordinary capital shares to advance in the materialisation of the new capitalisation of 7,000 million dollars last year, as other private banks in Bolivia, Ecuador and Venezuela, and seven CAF shareholder countries have done. In the framework of this meeting, an agreement was also signed with the Permanent Foreign Policy Forum of Chile and a Memorandum of Understanding with the Banco Estado. 

With its reincorporation as a full member, Chile will once again have a voice and vote in the organisation's decisions, will increase its access to financing in the form of credit and technical cooperation, will have access to funds from other donors administered by CAF, and will have access to knowledge tools to strengthen its public and private sectors. 

The Board meeting is part of a series of activities that CAF will hold in Santiago until March 9, which will address topics such as the impact of Venture Capital and sustainable development; the presentation of the Economy and Development Report (RED) in Chile; the presentation of CAF's Inclusion and Diversity strategies, the launch of the initiative "For all: Possible Change", among others. 

Thanks to the support of the Board of Directors and the 21 countries that form part of the institution, CAF will double its portfolio by 2030 and has proposed to increase the share of green projects in its total portfolio to 40% by 2026, to advance in its strategy to be the green bank and the economic and social reactivation of Latin America and the Caribbean.