Chile’s re-accession as a full member of CAF approved by a large majority in Congress
November 10, 2022
A large majority in both Houses of the National Congress approved today agreements for Chile’s return as a full member to CAF—development bank of Latin America. After 45 years, Chile has regained access to financing lines, and voting power in the decisions of the organization.
Chile was one of the founding countries of CAF. It withdrew in 1977, and rejoined in 1992 as an associate member. Now, in July 2022, it signed the agreement for the subscription of ordinary share capital of the development bank of Latin America to formalize its re-accession as a full member.
As of the enactment of the Law, Chile will once again have voting power in the decisions of the organization, will increase its access to financing both in the form of credit and technical cooperation, access funds from other donors administered by CAF, and to knowledge tools to strengthen its public and private sectors.
“Chile rejoining as a full member is great news for the strengthening of CAF and its consolidation as a key stakeholder for Latin American development and integration. As an organization, we are proud to work together with the Chilean government to promote the economic and sustainable growth of the country and the entire region,” said CAF executive president Sergio Diaz Granados. In this regard, CAF will soon open a representative office in Santiago to support the nation’s sustainable development plan.
This good news reinforces CAF as one of the main assets of the region’s integration, and was possible thanks to the support of Chilean President Gabriel Boric, Minister of Finance Mario Marcel, the National Congress of Chile and other relevant actors.
The approval of Chile’s return to CAF will promote the South American dimension fostered by the organization as part of its strategic vision, especially in the processes of economic revival, sustainable development and regional integration. It also renews CAF’s strategy of increasing the participation of shareholders such as Costa Rica, Mexico and the Dominican Republic, which became full members, as well as the accession of new shareholders such as El Salvador. The greater geographical reach of the institution comes in addition to a historic boost to the multilateral bank’s assets, for a total amount of USD 7 billion. This capital increase, approved by CAF’s Shareholders’ Meeting, will double its portfolio by 2030 in an effort to turn the multilateral organization into the Bank of Economic Revival and the Green Bank of Latin America and the Caribbean over the next decade.