CAF Promotes Recovery of Latin American Companies Through Commercial and Local Development Banking
CAF is rolling out a series of initiatives to help Latin America’s economy recover, including credit lines and loans to support SMEs and health sector companies, as well as others affected by the pandemic, as well as support to local development banks, nationwide guarantee funds, and technical assistance.
The health emergency scourging the region in the face of the COVID-19 spread, requires an immediate response to safeguard the health of the population, their well-being and social protection, but also to support companies maintain their operation and subsequent recovery.
Employment protection and small and medium-sized enterprises(SMEs)are critical to sustaining the social progress made by Latin America over recent decades. CAF - Development Bank of Latin America will swiftly provide commercial banks in its member countries with lines of credit and loans to support SMEs, the health sector and other critical communities.
"Ensuring the health of Latin Americans, protecting the most vulnerable populations, as well as jobs and companies, is a priority for governments and the private sector, which has unconditional support from CAF to achieve a comprehensive, rapid and response tailor-made to the context of each country," CAF executive president Luis Carranza Ugarte said.
Local development banks will also receive a substantial increase in credit lines of more than 80 percent in a timely manner, accompanied by other financial instruments such as national guarantee funds, among others, to promote the economic recovery of the region. In addition, CAF offers advice by its experts, who will provide technical assistance to national banking authorities on regulatory issues to be implemented to tackle the crisis generated by the coronavirus.
These initiatives are complemented by the rapid disbursement countercyclical line of credit of up to $2.5 billion to support and accompany the fiscal measures being implemented by governments, along with a contingent line of credit for up to $50 million per country for emergency healthcare and non-refundable technical cooperation assets up to $400 million per country for initiatives related to this global situation.
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