It is a secret to no one that financing is vital when promoting projects.
That is why CAF - development bank of Latin America and the Caribbean - approved a total of 1.14 billion dollars to promote sustainable development and inclusive growth in the region.
The credits will contribute to improving water security in Bolivia, ensuring food assistance in Argentina, linking financial conditions to the fulfillment of commitments on climate action and gender equality in Mexico, and strengthening climate adaptation and resilience in the Dominican Republic.
In addition, the CAF board approved the provision of series “C” shares for Bahamas, Dominica, Grenada, who have formally expressed their interest in joining the bank, along with five other Caribbean countries.
This is the first step to formalize the incorporation of the multilateral bank.
With this new positioning, CAF is on its way to becoming the development bank with the greatest presence in the region, which will translate into greater support for green and sustainable development projects.
Sergio Díaz-Granados, executive president of CAF, was very optimistic: “Our positioning in the Caribbean will give a new dimension to an institution created by six Andean countries [Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela] that, 56 years Later, it has 21 shareholder countries and is one of the main sources of multilateral financing in the region.
This expansion of CAF in the Caribbean will lead us to be the development bank with the most coverage in Latin America and the Caribbean.”
CAF's board meetings and General Shareholders' Assembly were held for the first time in the Dominican Republic, a country that assumes the presidency of the board for one year;
the first Caribbean country to do so.
At the meeting, it was agreed to approve four credits.
Some 240 million dollars will be allocated to guarantee the availability of water for social development and agricultural production in Bolivia.
CAF anticipates that it will contribute to increasing the area under irrigation by around 13,600 hectares, as well as improving productivity and efficient use of water, benefiting 15,000 families throughout the country.
400 million will also be invested to support the execution of the Prestación Alimentar food assistance program in Argentina, which contributes to the food security of families in situations of social vulnerability, approximately 4 million people.
Finally, the Dominican Republic will receive 200 million to promote activities for the mainstreaming of climate action in public sector management;
promote resilient use of territory and the fair transition of the economy towards low-carbon development.
In addition, at the meeting held in Punta Cana, it was agreed to approve four credits.
Some 240 million dollars will be allocated to guarantee the availability of water for social development and agricultural production in Bolivia.
CAF anticipates that it will contribute to increasing the area under irrigation by around 13,600 hectares, as well as improving productivity and efficient use of water, benefiting 15,000 families throughout the country.
400 million will also be invested to support the execution of the Prestación Alimentar food assistance program in Argentina, which contributes to the food security of families in situations of social vulnerability, approximately 4 million people.
Finally, the Dominican Republic will receive 200 million to promote activities for the mainstreaming of climate action in public sector management;
promote resilient use of territory and the fair transition of the economy towards low-carbon development.
At the meeting held in Punta Cana, it was agreed to approve four credits.
Some 240 million dollars will be allocated to guarantee the availability of water for social development and agricultural production in Bolivia.
CAF anticipates that it will contribute to increasing the area under irrigation by around 13,600 hectares, as well as improving productivity and efficient use of water, benefiting 15,000 families throughout the country.
400 million will also be invested to support the execution of the Prestación Alimentar food assistance program in Argentina, which contributes to the food security of families in situations of social vulnerability, approximately 4 million people.
Finally, the Dominican Republic will receive 200 million to promote activities for the mainstreaming of climate action in public sector management;
promote resilient use of territory and the fair transition of the economy towards low-carbon development.
During the CAF meetings, the results reported by the bank were presented.
In 2023, CAF reached a historical maximum of approvals of 16,261 million dollars;
total assets of 53,814 million dollars;
a net profit of 810 million;
and a heritage of 14,730 million;
7.4% higher than in 2022. In addition, last year Chile, the Dominican Republic and Honduras became full members of the institution.
This expansion and financial solidity was recognized by risk rating agencies with the highest grade issued to CAF, as well as investors who overdemanded the record of 45 bond issues in various international markets for a total of approximately 6.5 billion dollars.
Throughout its 30 years of existence, CAF's bond issuance program, which began in 1993, has managed to attract resources from international capital markets to key areas of the region's development.
Furthermore, in 2023, 4,298 million third-party resources were mobilized, which represented an increase of 190% compared to 2022;
that positively impacted the lives of millions of Latin Americans and Caribbeans.
The CAF board also approved the resources for the 2024 special funds, which total 138 million dollars, and will promote human, productive and social development projects in the countries of the region, and four new facilities: one to implement projects with Governments subnationals;
another to strengthen operations with the private sector;
a third to finance inclusive social welfare initiatives;
and, finally, one more to support the positioning of the region in regional and international forums.