CAF approves the largest capital increase in its 54-year history in Paraguay

RIO DE JANEIRO, BRAZIL – The Development Bank of Latin America (CAF) approved Tuesday in Asunción a capital increase of $7 billion, the largest capital increase in its 54-year history, according to its executive president, Sergio Díaz-Granados.

At the end of the CAF Board of Directors and General and Shareholders’ Meeting, held for the first time in Paraguay, Díaz-Granados celebrated the “unanimous” approval to strengthen the institution’s equity.

Read also: Check out our coverage on Paraguay

“This is an unforgettable day,” the official said at the closing ceremony, during which he also announced the admission of El Salvador and the Dominican Republic as full members of the organization.

Díaz-Granados pointed out that the process of approving the capital increase began last year in the Colombian city of Cartagena with the decision of the Board of Directors of the Organization and concluded today with the approval of all members “so necessary in these days.”

The Executive Director explained that this decision will allow “doubling” the scale of operations by 2030 and provide an “alternative, safe and reliable source of funding” to help countries in the region meet the challenges of climate change and pandemic.

He also called the decisions on El Salvador and the Dominican Republic “historic.”

Regarding El Salvador, he said that this is the first time that a country’s request for approval leads directly to full membership in the Organization.

In the case of the Dominican Republic, he explained that it went 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 we are all building here,” said the executive president, who stressed that the goal is not just to solve the problems of the present, but to build an institution that will help the region move forward “with greater hope.”

During the day, Díaz-Granados added, operations worth more than $1 billion were approved for Colombia, Panama and Paraguay, and an agreement was signed with Ecuador for nearly $175 million for roads, education and water and irrigation projects in rural areas of that country.

On the occasion of International Women’s Day, the multilateral organization presented its new strategy for gender equality for the period 2022-2026, which focuses on strengthening the economic and physical autonomy of women and girls and their freedom of choice.

Paraguayan Finance Minister Óscar Llamosas Díaz, who will serve as president of the CAF Governing Board for the next 12 months, assured that he is ready to accompany member countries “in a scenario that seems uncertain given the negative impact of the pandemic.”

With information from EFE