CAF obtains more resources and regional presence to be the green bank and the bank for economic reactivation in Latin America and the Caribbean

Latin America and the Caribbean will have a strengthened ally to address the immediate needs of their countries and in turn the long-term initiatives that promote the welfare of their people, productivity and environmental protection, thanks to the capitalisation of 7 billion dollars to CAF - development bank of Latin America- the largest in its history, which unanimously approved its Extraordinary Assembly of Shareholders

The Ministers of Economy and Finance, presidents of Central Banks and high economic authorities of the 19 shareholder countries, supported CAF's new vision to become a closer and more agile bank at the service of all the countries in the region. The strengthening of CAF's equity, which will double the portfolio by 2030, will focus on four key areas: making CAF the green bank of Latin America and the Caribbean; supporting subnational governments; fostering regional integration; and strengthening the role of the non-sovereign sector.

"We are grateful for the shareholders' vote of confidence in this ambitious bet that we have set for the future of the organisation: to be the bank for social and economic reactivation in the immediate future, and the green bank of Latin America and the Caribbean at the end of the decade. This capitalisation will allow us to improve the quality of life of millions of people, promote sustainable development and protect the only planet we have," said Sergio Díaz-Granados, executive president of the institution.

For his part, Paraguay's Minister of Finance, Óscar Llamosas, in his first declarations as the new President of the Board of Directors of the international organisation, celebrated the increase in assets and expressed that the challenges brought about by the post-pandemic recovery by COVID-19 are a reality, which the countries of the region must face. In this regard, he mentioned that CAF's Agenda accompanies these challenges through its positioning as a bank within the framework of economic reactivation and as the Green Bank of Latin America and the Caribbean.

The Secretary of Strategic Affairs of Argentina and member of the Board of Directors, Gustavo Beliz, said: "With these actions, the countries of Latin America are unanimously taking the decision to strengthen the Development Bank to address the most urgent challenges of social inclusion, climate change, smart cities and infrastructure for integration", who also stressed that with this capitalisation CAF commits that 40% of its portfolio will be aligned to finance operations in support of sustainable development.

After 61 years, El Salvador joins a new multilateral bank and strengthens its links with these organisations. The incorporation of El Salvador and the Dominican Republic as full members of CAF reflects the institution's commitment to have a greater presence in Central America and the Caribbean, and demonstrates the confidence of the countries in CAF's financial soundness.

"The incorporation of El Salvador is a sign that we are heading towards a fairly comprehensive transformation process. We also offer our good offices to help in any way we can to help the development bank of Latin America to make it a fairer and more developed region," said Alejandro Zelaya, El Salvador's Minister of Finance.

The Vice Minister of Public Credit of the Dominican Republic, María José Martínez Dauhajre, highlighted in her speech: "We are sure that the incorporation of the Dominican Republic to CAF as a full partner will expand technical assistance and improve financing conditions to advance in priority projects that will help in the fulfilment of the objectives of the 2030 agenda for sustainable development".

Among the benefits that El Salvador and the Dominican Republic will receive as full members are access to new sources of financing, technical assistance resources, and specialized knowledge that will improve the well-being of the population, competitiveness, and international insertion.

CAF's Board of Directors, held for the first time in Asunción, also approved five operations that will benefit more than 500,000 people in Colombia, Panama and Paraguay. 

• CAF will lend 600 million dollars to Colombia to promote the orange economy and boost climate action.
• CAF will support Panama to become more resilient to climate change with $320 million loan.
• CAF approves a $160 million loan to Paraguay for water and sanitation works in the Mariano Roque Alonso Basin.

CAF also approved external financing with sovereign guarantee to Colombia for up to USD 1.2 billion, which seeks to strengthen the development of the Caribbean, Pacific and Santanderes regions of the country. In addition, three credit contracts worth USD 175 million were signed in favour of Ecuador, which will help improve rural roads, access to irrigation and drainage services in the country's provinces, and implement national plans for education, drinking water and sanitation.