CAF promotes Latin American recovery with rural road, energy, social infrastructure and SME projects for USD 681 million

At its last meeting of the year, held in Montevideo, Uruguay, the Board of Directors of CAF—development bank of Latin America—reiterated its commitment to economic revival and to becoming the green bank of the region, approving financing operations for a total of USD 681 million in strategic sectors such as road corridors, energy transition, social infrastructure and the private sector, especially small and medium-sized enterprises (SMEs), among others.

“Latin America and the Caribbean can count on an agile and efficient CAF that provides solutions to the short-term challenges after a year marked by high inflation, global uncertainty and the aftermath of the pandemic, and also long-term issues through climate change mitigation, the reconstruction of Manabí and Esmeraldas in Ecuador and support for SMEs in Brazil, among others, which will help us offer greater well-being and opportunities to the people of the region,” said CAF executive president Sergio Díaz-Granados.

The Board of Directors—composed of ministers of Economy and Finance, presidents of central banks and senior economic authorities of CAF’s shareholder countries—approved operations that will promote sustainable development in Argentina, Bolivia, Brazil, Ecuador and Paraguay:

CAF funds the development of productive rural roads in Argentina and green projects and fosters Pan American Energy’s supply security with USD 400 million

CAF approves USD 81 million loan for construction and paving of important road stretch in Oruro

CAF approves credit line increase to USD 100 million for São Paulo State Development Agency

CAF will allocate USD 100 million for Manabí and Esmeraldas provinces

CAF’s Board of Directors also approved the Access to Information and Institutional Transparency Policy, which is the first concrete and comprehensive policy developed by CAF on access to information and transparency. It will also promote the democratization of information through various channels that allow dissemination, strengthening of governance and accountability, as well as the reaffirmation of CAF’s commitment to become a more transparent and proactive bank in the dissemination of information.

CAF’s executive president met at the end of the Board meeting with Uruguay’s President Luis Lacalle Pou to reiterate his commitment to regional integration through technical cooperation with non-reimbursable resources of up to USD 950,000 to conduct complementary studies related to the construction of theinternational bridge over the Uruguay River, Monte Caseros–Bella Unión, between Argentina and Uruguay.

As part of the activities around the 176th meeting of the Board of Directors in Uruguay, CAF launched its flagship publication, the Economy and Development Report (EDR2022) entitled: Inherited inequalities: The role of skills, employment and wealth in the opportunities of the new generations, which identifies the main barriers to social mobility arising from inequalities of origin, including family socioeconomic level, ethnicity, gender and geographic location.

Similarly, the Enrique García Leadership Award was launched, aimed at young people between 15 and 24 years old to recognize their leadership in activities, ideas or initiatives that have had an impact on Latin America and the Caribbean, as a tribute to the legacy of former president Enrique García in the transformation of the Andean Development Corporation into an organization with a Latin American and Caribbean scope, made up of 21 member countries in the region, as well as Spain and Portugal, and a portfolio of more than USD 20 billion under his leadership between 1991 and 2017.

The activities ended with a CAF Bike Ride for Montevideo, a free event with the support of the Municipality of Montevideo, which is part of the initiatives promoted by CAF to reduce the environmental impact and help improve the lives of Latin American and Caribbean people, in addition to creating meeting spaces through culture and sport, promoting integration and contributing to the well-being of all. The activity is in memory of Soraya Azán, who was CAF’s specialist in mobility and shared for more than 25 years her passion and experience in the planning, development and management of urban transport systems in Latin America and the Caribbean.