COVID19: CAF makes USD 2.5 billion available for countries to protect their population and economies
As a development ally to Latin America, CAF makes available an Emergency Credit Line of rapid disbursement of up to USD 2.5 billion, which will allow authorities to offer a rapid and timely response to mitigate the effects of COVID-19's expansion, and contribute to the continuity of business operations and the recovery of economic growth.
In order to offer a comprehensive support to countries when they need it most, CAF –development bank of Latin America- makes available to its shareholders an Emergency Credit Line of a countercyclical nature and rapid disbursement for up to USD 2.5 billion, which will serve to support and complement the fiscal measures that governments are applying.
“The credit line’s objective is to streamline the approval of operations that quickly and effectively support the emergency measures our countries are adopting to mitigate the effects of COVID-19 on the economy and on people's quality of life. In contingencies like this, our role as development partners of all our shareholder countries is even more relevant” assured CAF's Executive President Luis Carranza Ugarte.
This initiative joins another announced on March 3rd, during the institution's Board of Directors Assembly held in Buenos Aires, Argentina, which consists of a contingent credit line of up to USD 50 million per country that has been made available to shareholders to provide direct attention of public health systems. The authorities also have at their disposal non-reimbursable technical cooperation resources of up to USD 400 thousand per country for initiatives related to this global situation.
"In addition, we'll continue supporting our countries' banking systems, development banks as a priority, so that they can allocate resources to the productive sector, particularly to small and medium-sized enterprises; we will also continue making efforts to mobilize resources from third countries and strategic partners to complement the efforts our shareholder countries have been making, "added Carranza Ugarte.
Finally, CAF has activated a corporate action protocol, which follows the World Health Organization (WHO)'s guidelines, and includes prevention measures in the countries in which it operates, such as the adoption of remote work for 100% of its personnel, as well as control plans in case of a contagion. These measures guarantee the institution's operability, critical process execution and objective fulfillment.
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