CAF approves short-term loan in favor of the Republic of Ecuador for up to USD 800 million

The operation approved under CAF's Extraordinary Liquidity Financing (ELF) instrument will provide financing for Ecuador to continue negotiating an Extended Facilities Agreement with the IMF, currently approved at the staff level, for the benefit of its fiscal stability, macroeconomic stability, promotion of inclusive growth and protection of the most vulnerable.

The extraordinary virtual meeting of the Board of Directors reflected on the need for Latin America and the Caribbean, through CAF, to respond swiftly and effectively, with a sense of urgency and a spirit of solidarity and trust, to the needs of a shareholder country.

This operation, carried out in close coordination with the IMF, highlights CAF's countercyclical role and its capacity for effective action in the global financial safety net, by dynamically making available agile financial solutions that enable countries to face situations of economic complexity and support the strategic management of public finances and the responsible management of public debt.

This operation is possible because in 2023 CAF became an authorized SDR holder-one of the few institutions in Latin America and the Caribbean with such authorization. This allows the bank to respond quickly and dynamically to pressing situations in its shareholder countries.

CAF is a leading institution in Latin America and the Caribbean with annual approvals exceeding USD 16 billion for projects that promote the well-being of our population. The bank currently has 21 shareholder countries and, since its founding in 1968, has been at the service of Latin America and the Caribbean as one of the main sources of financing for sustainable development and regional integration.