The Development Bank of Latin America-CAF agreed this Tuesday in Asunción to a capital increase for an amount of 7,000 million dollars, the largest capital increase in its 54-year history, announced its executive president, Sergio Díaz-Granados.
Source: EFE
At the end of the CAF Board of Directors and General Assembly and Shareholders meeting held for the first time in Paraguay, Díaz-Granados celebrated the “unanimous” approval of strengthening the institution’s assets.
“It is a day not to forget,” said the official at the closing ceremony, in which he also announced the incorporation of El Salvador and the Dominican Republic as full members of the organization.
Díaz-Granados pointed out that the process to approve the capital increase began last year in the Colombian city of Cartagena with the decision of the entity’s Board of Directors and culminated today with a consensus “so necessary these days” of all its partners.
The executive explained that this decision will allow “doubling” the size of its operations between now and 2030 and offering an “alternate, safe, reliable source of financing” so that the countries of the region can face the challenges of climate change and those left behind. for the pandemic.
In addition, he described as “historic” the decisions on El Salvador and the Dominican Republic.
In relation to El Salvador, he referred that it is the “first time that a country passes in its request for approval directly to be a full member” of that corporation.
While in the case of the Dominican Republic, he explained that it goes from being a partner to a full member. The Caribbean country joined the multilateral organization in 2004 as a Series “C” shareholder.
“The highest point in the history of CAF is the one that we are all building here,” said the executive president, who stressed that “more than solving the problems of the present” they are building an institution that helps the region move forward ” with greater hope.”
During the day, Díaz-Granados added, operations for more than 1,000 million dollars were approved for Colombia, Panama and Paraguay and an agreement was signed with Ecuador for about 175 million dollars for roads, education, as well as for water projects. and irrigation in the rural world in that country.
And on the occasion of International Women’s Day, the multilateral entity presented its new strategy for gender equality for the period 2022-2026, which emphasizes the empowerment of women and girls by strengthening their economic, physical and social autonomy. of decision making.
The Minister of Finance of Paraguay, Óscar Llamosas Díaz, who will hold the Presidency of the CAF Board of Directors for the next 12 months, assured, for his part, that he is willing to accompany the member countries “in a scenario that appears uncertain”, given the negative effects inherited from the pandemic.
