EUR 100 million for health projects and economic revival

The health emergency in Latin America and the Caribbean arising from the pandemic has prompted a comprehensive response by CAF—development bank of Latin America—to mobilize third-party funds for the health sector, specifically infrastructure, renewable energy, energy efficiency, transport and urban development projects and programs.

The EUR 100 million increase in the line of credit granted to CAF by CDP is set to benefit Latin American and Caribbean countries for the emergency caused by COVID-19 and subsequent economic recovery.

This brings to a total of EUR 200 million the funds provided to CAF by CDP, as it comes in addition to the EUR 100 million granted in June 2020 to fund climate change projects, in sectors such as energy, transport, urban development and sustainability. To date, these monies have benefited a number of priority projects and programs in the areas of energy, urban development and transport, in countries such as Brazil and Paraguay.

The commitment to cooperation between the institutions was reiterated in an online workshop organized between CAF, CDP and the Italian Ministry of Foreign Affairs (MAECI) on March 4, 2021: “The partnership between CAF & CDP: Exploring opportunities for Italian companies in Latin America. The event was attended by more than 300 Italian companies with an interest in investing in Latin America. In the workshop, participants exchanged ideas on topics such as business opportunities in green and infrastructure sectors, as well as the macroeconomic vision of the region. “The financial alliance with CDP is strategic for channeling funds into the region, complementing the countercyclical measures implemented by CAF since the onset of the pandemic, in an attempt to improve the quality of life of Latin Americans,” said CAF Vice President of Finance Gabriel Felpeto.

Collaboration between CAF and CDP promotes Latin America’s sustainable development through different value-added funds mobilization schemes at the service of CAF’s shareholder countries, and this facility will further strengthen the relationship between institutions, providing agile and timely support to the region.