CAF's Executive President, Sergio Díaz-Granados, highlights the bank's ambitious agenda for Latin America

The executive president of CAF -development bank of Latin America-, Sergio Díaz-Granados, chaired a forum with entrepreneurs at CEOE, which served to learn first-hand about CAF's lines of action in sectors related to Spanish companies, such as those related to infrastructure, urban development, sustainability and climate action, among others, as well as the new value proposition of the institution's support to the private sector. The conference was opened by the Secretary of State for Trade, Xiana Méndez; the Vice-President of CEOE, Íñigo Fernández de Mesa; and the Director General of the Spanish Chamber of Commerce, Inmaculada Riera.

The Vice-President of CEOE, Íñigo Fernández de Mesa, stressed that Latin America is a region of enormous importance for Spanish companies, which are very present in key sectors, such as banking, energy, communication, construction and infrastructure management, technological services, tourism and the provision of public services. In this sense, he stressed that "the Development Bank of Latin America plays an essential role, as a guarantor of investment financing, which is necessary to increase growth potential, make it more competitive and attractive on an international scale and improve the standard of living of its citizens".

Without the presence of Spanish companies in Latin America, our economy would be very different today, weaker, more volatile and dependent solely on the Spanish and European economic cycle, said the Vice-President of CEOE. In this context, "public-private alliances also play a decisive role, which is why I did not want to fail to mention the importance of the work that we have been developing since the tripartite. This alliance between the Secretary of State for Trade, the Spanish Chamber of Commerce and CEOE, through the organisation of regional, bilateral and sectoral meetings, is giving us so many good results, boosting the internationalisation process of our companies and improving the competitiveness and productivity of our economy," he said. 

At the business forum, the Secretary of State for Trade, Xiana Méndez, promoted the presence of Spanish companies in Latin America and the Caribbean, stressing that "the Ibero-American region has been, is and will be a priority for Spain. Economic relations have been deepening in recent years, strengthening our trade and investment relations". In fact, she stressed that in the last year there has been an upward trend in trade exchanges between Spain and Latin America, and the levels prior to the COVID-19 health crisis have been recovered, so that "our foreign sector is a key element in the economic recovery of both Spain and Latin America".  She also stressed the firm commitment of Spanish companies to this region, despite the difficult international context of recent years marked by the pandemic; and the positive evolution of investments, where "growth has been spectacular, making Spain the second largest investor in Latin America, only surpassed by the United States".

In this area, Xiana Méndez highlighted the role of CAF in promoting business development between this region and Spain, with which Memoranda of Understanding have been signed with COFIDES and FIEM. Its purpose is to promote collaboration in projects of Spanish interest in Latin America, which promotes a more sustainable and inclusive economy through co-financing in sectors such as infrastructure, social development, education, health, sustainable development, renewable energy and water supply, among others.

Inmaculada Riera, Director General of the Spanish Chamber of Commerce, highlighted CAF's role since the beginning of its operations in 1970, as the financial arm of Andean integration, as well as its actions in the face of the challenges posed by the pandemic. Riera referred to the responsibility of the Chamber of Spain in helping Ibero-American companies and institutions to face opportunities and challenges, to the "conviction that the agenda for action and strategic alliances in the coming years will be based on public-private collaboration" for the mobilisation of knowledge, technology, innovation and investment, "and in which multilateral financial institutions such as CAF will play a fundamental role".

The panel "The importance of CAF in the development of Latin America" included the participation of CAF's President, Sergio Díaz-Granados; the Corporate Vice President of Strategic Programming, Christian Asinelli; the Vice President of the Private Sector, Jorge Arbache, and CAF's new Manager of Climate Action and Positive Biodiversity, Alicia Montalvo, who presented the institution, its lines of action, and analysed its future strategy, placing special emphasis on investment opportunities in Latin American countries.

The President of CAF, Sergio Díaz-Granados, highlighted the birth and evolution of the Development Bank of Latin America, which today has become the leading financial institution in the region. In the first phase, he stressed, they realised that they had to change their business plan and start investing in key sectors, such as infrastructure. Thanks to this initiative, he explained, the bank grew from being an Andean bank to an international institution.

In a second phase, Díaz-Granados continued, Spain joined CAF's board of directors, which contributed to improving the bank's credit quality. When it became part of the entity, CAF had 3 billion dollars in financing and last year this figure reached 13.2 billion, which meant important support for the region during the pandemic.

Currently, according to Granados, the Bank's assets have been increased by $7 billion, which will allow it to invest $25 billion in green growth until 2026, a new line of financing the bank wants to give top priority to. "CAF is not just a bank that finances works, but is the greatest asset that Latin America and the Caribbean has," said its president, who also stressed CAF's great commitment to Spain, as a strategic partner to make projects of interest in the region a reality.

The Corporate Vice President of Strategic Programming, Christian Asinelli, and the new CAF Manager of Climate Action and Positive Biodiversity, Alicia Montalvo, highlighted a renewed agenda of projects for CAF, better known as the "green bank" of Latin America and the Caribbean. They emphasised, as did the bank's president, the mobilisation of 25 billion dollars over the next five years to promote climate action and biodiversity conservation. In this way, they explained, it will go from 24% in 2021 to 40% green finance in all its operations in 2026, and 50% in 2030.

The aim, according to Montalvo and Asinelli, is to promote energy transition, reforestation and forest recovery; incorporate sustainability criteria in all operations, develop new financial instruments and attract capital from international markets; promote sustainable and resilient infrastructure to climate change; and promote partnerships with strategic actors to generate mitigation and adaptation solutions.

Finally, CAF's Vice President for the Private Sector, Jorge Arbache, stated that companies in Latin America are small and not very productive, while what is needed is to help them grow so that they become strong and dynamic. Like his predecessors, he also stressed the importance of the energy transition in the region, thanks to its numerous natural resources, and he supported the development of the regional carbon market and green hydrogen. It is crucial, he said, to firmly support economic recovery, but "growth must be not only sustainable, but sustained, with less volatility and more predictability". The bank envisages an ambitious agenda, which, according to Arbache, needs the support of strategic allies to make it a reality, and Spain is undoubtedly one of them.