El Salvador signs share subscription agreement to join CAF as a Member Country

The Republic of El Salvador ratified its intention to become a member country of CAF—development bank of Latin America—by signing an agreement for this purpose and registering for Series “B” shares in regular CAF capital, which was signed by the Minister of Finance, José Alejandro Zelaya, and the executive president of the institution, Sergio Díaz-Granados.

“Signing this agreement is an honor for us and a big step, since it represents a greater Latin American and Caribbean dimension as we incorporate new Central American countries. This means that CAF will be able to address strategic issues for the country, along with the rest of the region in terms of sustainable development and integration. We hope that this is the beginning of a process that can be quickly formalized, so that El Salvador joins CAF and we can work hand in hand to improve people’s quality of life, while promoting competitiveness and internationalization,” said Sergio Díaz-Granados.

Meanwhile, the Minister of Finance, José Alejandro Zelaya, expressed his gratitude on behalf of President Nayib Bukele’s government and the people of El Salvador for: “the opportunity they give our people to continue directing the development policies promoted by the President of the Republic. After 61 years, El Salvador will join a new multilateral bank”, he said.

The agreement was signed at the end of the CAF Board of Directors CLXXIII session, held in Cartagena de Indias, and lays out the steps to be followed for the full incorporation of El Salvador as a CAF member. Benefits that the Central American country will receive include access to new financing sources, technical assistance resources and specialized knowledge that will improve the well-being of the people, along with the country’s competitiveness and international relationships.

CAF is a multilateral financial institution whose mission is to foster sustainable development and Latin American integration in its shareholder countries. Its shareholders include: Argentina, Barbados, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Jamaica, Mexico, Panama, Paraguay, Peru, Portugal, Trinidad and Tobago, Spain, Uruguay, Venezuela and 13 private banks in the region. It assists public and private sectors, providing multiple products and services to a broad portfolio of clients made up of shareholder states, private companies and financial institutions.