CAF expands presence in Chile, disburses USD 1,297 million for social recovery in 5 countries of the region

For the first time in its 55-year history, CAF—development bank of Latin America—Board of Directors and General Assembly, made up of the Ministers of Economy and Finance, Presidents of Central Banks and senior economic authorities of shareholder countries, was held in Santiago, Chile, as part of the activities developed by the multilateral organization to reinforce its presence, after the country rejoined the institution as a full member.

At the 177th meeting of CAF’s Board of Directors, loans totaling USD 1.17 billion were approved for Argentina, Chile and Paraguay, in addition to the disbursement of USD 122 million to promote electric mobility in Panama, Paraguay and Uruguay through CAF’s Electric Mobility and Low Carbon Transport Program (E-MOTION) and the Green Climate Fund; in strategic sectors such as energy, infrastructure, education, agro-exports, inclusion and sustainable mobility, among others.

“Chile’s return as a full member of CAF is a historic milestone for Latin America and the Caribbean, as it occurs in a social and economic context in which an active role of multilateral banking is most required, and also coincides with CAF’s best moment in financial strength, risk ratings and technical expertise to support the public and private sectors in Chile and other countries in promoting economic and social revival, and to become the green bank of Latin America and the Caribbean,” said CAF Executive President Sergio Díaz-Granados.

Below are the operations discussed and approved by CAF’s Board of Directors:

• CAF approved loans for USD 840 million to advance energy transition and social model of disability in Argentina
• CAF approves expansion of the credit line to Chile’s Banco del Estado to support social development and job creation
• CAF will allocate USD 122 million to foster electric mobility in Panama, Paraguay and Uruguay
• CAF supports Paraguay’s local and regional integration with USD 135 million road program

At the end of the meeting of the Board, Banco Davivienda signed an agreement to subscribe ordinary capital shares to advance the formalization of the new USD 7 billion capital increase last year, as other private banks have done in Bolivia, Ecuador and Venezuela, and seven CAF shareholder countries. As part of this meeting, an agreement with Chile’s Permanent Forum on Foreign Policy and a Memorandum of Understanding with Banco del Estado were also signed.

With this re-accession as full member, Chile will once again have voting power in the decisions of the organization, will increase 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 strengthen its public and private sectors.

The meeting of the Board is part of a series of activities that CAF will develop in Santiago until March 9, which will address issues such as the impact of venture capital and sustainable development; the Presentation of the Economy and Development Report (EDR) in Chile; the presentation of CAF Inclusion and Diversity strategies, the launch of the initiative “Por tODoS: The Possible Change, among others.

Thanks to the support of the Board of Directors and the 21 countries of the institution, CAF will double its portfolio by 2030 and has pledged to increase the share of green projects in its total portfolio to 40% by 2026, to advance its strategy of becoming the green bank and the bank of economic and social recovery of Latin America and the Caribbean.