Chile’s President Leads CAF Re-accession Ceremony

Chilean President Gabriel Boric Font arrived this afternoon at the Central Campus of the University of Chile to participate in the ceremony of Chile’s re-accession to the Andean Development Corporation (CAF), known today as the Development Bank of Latin America.

The event was attended by different authorities of the Executive Branch, including Finance Minister Mario Marcel and Foreign Minister Antonia Urrejola, as well as CAF Executive President Sergio Díaz-Granados, and former President of Colombia and Nobel Peace Prize recipient Juan Manuel Santos.

During his remarks, the President stated that “Latin American integration is not merely adjectives; Latin American integration is not just speeches, it is serious work, persistent over time, and I am happy and proud that in this dimension, in the dimension of CAF, Chile—as Juan Manuel Santos said—is coming back home.”

“Today we celebrate another step in the integration of #LatAm and the #Caribbean. Let’s always unite for what is worthwhile,” said @juanmansantos at the re-accession ceremony of 🇨🇱 as a full member of @AgendaCAF. https://t.co/lKe7KGMRrO pic.twitter.com/laHI0Yvxxt

— CAF (@AgendaCAF) March 6, 2023

“It's not just words, it’s taking charge, with institutions such as CAF; that’s why I always come back to the issue that, as long as this cooperation is effective, we will also be able to improve our own living conditions,” added President Boric.

“Chile is synonymous with strong institutions, a vibrant democracy, experience and prestige. We admire their achievements, share their values, and wish to further advance their worldview. CAF works with the public sector and the private sector. This highlights the institution’s role as an implementing agenda. When we talk about building bridges, we talk about dialogue and common agendas, but also about an effective mobilization of funds to advance the progress of Chileans and Latin Americans,” said CAF Executive President Sergio Díaz-Granados in his presentation.

By becoming a full member, Chile will be able to actively participate in the decisions of the organization, will expand 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 enhance its public and private sectors.

About Chile’s relation with CAF

Chile was one of the six founding countries of the Andean Development Corporation (CAF). In 1977, however, it decided to leave the institution, to become later an associate member in 1992. Today, it rejoins as a full member, which will provide access to different lines of financing, and to have voting power in the decisions of the organization, through the participation of Finance Minister Mario Marcel.

Furthermore, CAF is a multilateral financial organization that started operations back in 1970 and, in accordance with its constitutional mandate, aims to support sustainable development and regional integration in Latin America and the Caribbean. It uses financing operations, non-reimbursable funds for technical assistance and support for the technical and financial structure of public and private sector projects. To this end, it finances on average more than USD 14 billion every year in the region, with a funding portfolio to date in the excess of USD 32 billion, with prospects of doubling this portfolio by 2030.

Since its foundation in 1968, its mission is to promote sustainable development and regional integration by financing public and private sector projects, providing technical cooperation and other specialized services.

Currently composed 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.

CAF decided to reinforce the relationship with Chile to further promote the energy transition with power generation through renewable sources; electromobility in several cities regions of the country; and make available to the nation technical and financial support for the Zero Digital Divide Plan 2022–2025, among other initiatives.