CAF, development bank of Latin America and the Caribbean approved two loans for Ecuador aimed at boosting the growth of micro, small, and medium-sized enterprises (SMEs) and strengthening public policies for youth employment, gender equality, and social inclusion.

The first loan, USD 250 million, will promote gender equality, inclusion, diversity, and social protection, and support vulnerable groups by fostering job creation, especially for young people, through mechanisms that include the education sector.

The second loan, USD 150 million, will go to Banco Pichincha to finance investments needed by Ecuadorian SMEs, as well as investments in green businesses and energy efficiency projects for the bank's clients. The financial structure for this operation refers to an A/B Loan that will involve several foreign commercial banks, bringing new resources and foreign currency to the Ecuadorian economy, positively impacting job creation and increasing high-quality, value-added production. This facility will meet the financial needs of Banco Pichincha's clients who need to invest in their businesses. Additionally, the agreement will strengthen women-led SMEs in productive sectors to boost the country's economy.

"These two loans reinforce our commitment to the Ecuadorian government's development plans, especially to promote sustainable economic growth, strengthen the SME sector, youth employment, social inclusion, and energy transition. These loans reaffirm our role as an integrative and green bank in Latin America and the Caribbean," said Sergio Díaz-Granados, CAF's executive president.
As of December 2023, CAF in Ecuador has a credit portfolio of USD 4.327 billion, of which USD 4.168 billion have been for the sovereign sector in key areas such as health, education, roads, connectivity, urban development, water and sanitation, energy, environment, support for the private sector, and the financial system, among the most important.

CREDIT CONTRACT SIGNINGS

During the institution's Board meeting held in Lima, six credit contracts and one technical cooperation agreement were signed. These operations are in favor of the Republic of Ecuador and Decentralized Autonomous Governments.

Sergio Díaz-Granados, executive president of CAF, and Juan Carlos Vega, Minister of Economy and Finance of Ecuador, signed the following six credit contracts, totaling USD 483 million:

• Youth Employment, Gender, Inclusion, Diversity, and Social Protection Program, PBL (signing of the approving resolution of the CLXXXII Board meeting) for USD 250 million, aiming to promote youth employment, gender equality, inclusion, diversity, and social protection through public policies that strengthen gender equality in the workplace and enhance social protection mechanisms to support the most vulnerable people.
• Comprehensive Productive and Social Development Program of the Province of Guayas: With an investment of USD 50 million, the Decentralized Autonomous Government of the Province of Guayas will develop projects to increase productivity, promote social inclusion, and strengthen climate change resilience. The program includes 20 km of irrigation channels, 7 flow regulation gates, 6,000 irrigated hectares, benefiting 6,500 families and improving the conditions of 25,000 inhabitants.
• Comprehensive Development Program of the Province of Pichincha (PRODEPI): The Decentralized Autonomous Government of the Province of Pichincha will receive USD 41 million for the implementation of policies for social development, rights protection, improvement of road and irrigation infrastructure. It will benefit 300,000 people with new urban road infrastructure, irrigate 800 hectares, improve 20 km of rural roads, and provide health and social services to 60,000 women.
• Road Connectivity Program for Productive Development of Manabí (PROVIAMA): The Decentralized Autonomous Government of the Province of Manabí will receive USD 43 million to promote the productive, social, and economic development of the central-southern area of the province through the construction, rehabilitation, and maintenance of approximately 120 km of the provincial road network, benefiting approximately 441,000 people, increasing trade, connectivity, and tourism in more than 6 rural populations of Manabí.
• Comprehensive Urban Infrastructure Strengthening Program. The Decentralized Autonomous Municipal Government of Guayaquil will execute a program with USD 49 million in funding, aimed at improving the quality of life for over 1,150,000 residents directly and 5.8 million indirectly, through public infrastructure interventions in urban mobility, public spaces, and water and sanitation infrastructure.
• Comprehensive Water and Sanitation Project - Northern Urban Zone of Portoviejo Canton. With an investment of USD 50 million, the Decentralized Autonomous Municipal Government of Portoviejo will execute a comprehensive project that will improve the quality of life for approximately 153,000 residents and promote economic development by providing infrastructure for universal coverage of drinking water, sanitary and storm sewers, and road connectivity to vulnerable areas.

Additionally, a technical cooperation agreement for USD 250,000 was signed to provide support to the Government of Ecuador through non-reimbursable humanitarian aid funds to address emergency needs due to the rainy season that has caused damage in urban and rural areas.