CAF member Nations back Institution’s Latin American Development work

(Caracas, Sept. 28, 2012). “The challenges Latin America still faces in its efforts to continue improving the population’s quality of life, make it imperative to keep working on a comprehensive agenda, with a long term view that makes macroeconomic stability, microeconomic efficiency, social justice and environmental balance compatible,” said CAF President Enrique García, adding that this was an agenda promoted by the institution. “In support of this work, the institution’s board approved an extraordinary capital increase at the end of 2011, whose agreements, we are pleased to say, have been signed in their totality.”

In November 2011, CAF’s Board approved a US$2 billion cash increase, a capitalization measure decided by the institution’s shareholders. In the 2007-2011 period, capital increases amounted to US$6 billion.

“Thanks to this capitalization boost, which will continue through annual payments in the next five years, CAF will be able to approve up to US$72 billion for regional development, reach a portfolio of more than US$30 billion and double its capital for 2017,” García said.

This support by CAF’s partners reflects the trust they have in the institution’s capacity, based on its financial health and growing activity, which has been possible thanks to major contributions by shareholders, their profit reinvestment and the bank’s consistent presence in international financial markets. Its financial performance and its shareholders’ extraordinary support have led to 16 credit rating upgrades in the last 15 years. CAF currently has four ratings by the most prestigious credit rating agencies: Moody’s (Aa3), Japan Credit Rating (AA-), Standard & Poor’s (A+, with a positive perspective) and Fitch (A+).

“The recognition of CAF’s role as one of the main multilateral financing sources in the region, even in economic crisis situations, is reflected in these extraordinary capital increases,” García concluded.

CAF supports its member nations in implementing development plans, especially major challenges in productive transformation, institutional development, innovative social policy and integration and trade facilitation infrastructure projects. In this context, CAF has remained a flexible institution, capable of adjusting to complex environments and its shareholders’ demands.