CAF approves credit line expansion to Chile’s Banco del Estado to underpin social development and job creation

The Board of Directors of CAF—development bank of Latin America—approved today a credit line increase for Chile’s Banco del Estado, which will go from USD 100 million to USD 200 million. The line of credit aims to underpin Chile’s social and economic development through financing to micro, small and medium enterprises, and help boost productivity and business innovation, as well as the development of economic and social infrastructure for the country. The credit expansion also includes support for energy efficiency, cogeneration and green business programs for its customers, as well as the funding of mortgage loans for social and sustainable housing.

“We have been working with Banco del Estado since 2016 in a solid and constructive relationship, with the aim of empowering small and medium-sized enterprises, which have promoted job creation and economic development. For us, the continuity of this partnership is a natural, certainly lasting and promising path, and that is why we want to support its strategy of creating new financial tools that promote sustainable economic development,” said CAF Executive President Sergio Díaz-Granados.

Banco del Estado plays a pivotal social role for the nation, promoting financial inclusion, support for vulnerable segments and inclusive economic development. Its strategic line includes the promotion of sustainable finance and the creation of green products. These initiatives are aligned with CAF’s goal of becoming the green bank and the economic and social recovery of Latin America and the Caribbean.

With this operation, CAF seeks to stimulate the creation of innovative financial instruments that promote solvency and financial sustainability, in an effort to promote inclusive social welfare.

The mission of CAF—development bank of Latin America—is the promotion of sustainable development and regional integration by financing public and private sector projects, providing technical cooperation and other specialized services. Established in 1968 and currently consisting of 21 countries—19 from Latin America and the Caribbean, along with Spain and Portugal—and 13 private banks, it is one of the main sources of multilateral financing and an important storehouse of knowledge for the region.