Costa Rica Agrees to Become Full Member of CAF

In an effort to enhance the well-being of the population and sustainable development in the country, the executive president of CAF—development bank of Latin America—, Luis Carranza Ugarte, signed with Costa Rica Central Bank president Rodrigo Cubero Brealey an agreement for Costa Rica’s accession as a full member of the multilateral body. Costa Rica’s President Carlos Alvarado and Finance Minister Elian Villegas attended the signing ceremony held at the Presidential Palace as guests of honor.

Costa Rica joined CAF as a Series “C” shareholder in 2002. Since then, the institution has promoted various initiatives and projects aimed at supporting national development plans. Costa Rica’s accession as a full member will help the nation secure access to greater long-term financial resources on favorable terms, as well as non-reimbursable technical cooperation funds.

Furthermore, with the gradual incorporation of Mesoamerican countries into the institution, CAF will continue to bolster its role in supporting the Latin American integration process, one of the main pillars of the bank, which has funded multiple integration projects throughout the region for the past 50 years.

During the signing event, CAF executive president Luis Carranza Ugarte noted: “We appreciate Costa Rica’s trust in our institution to deepen the relationship and remain an instrument to promote sustainable development and regional integration. At junctures such as today, CAF is committed to providing financing, technical advice and knowledge generation for the service of the nation.”

In addition, Costa Rica’s Central Bank president Rodrigo Cubero Brealey, emphasized: “Costa Rica’s accession as a full member of CAF gives the country full access to funds on favorable terms in order to meet fiscal needs and boost economic growth and create jobs. In addition to financial support, Costa Rica will benefit from technical cooperation in various areas, especially those that help us move towards sustainable development and improve well-being of the Costa Rican population.”

CAF has been an unconditional partner of Costa Rica in tackling the pandemic. The institution disbursed in 2020 a USD 500 million loan, approved in 2019, to support the nation’s fiscal efforts and help meet short-term financing needs. Subsequently, as part of the aid for the healthcare emergency caused by COVID-19, CAF has approved two long-term loans totaling USD 550 million.