Throughout 2021, the Andean Development Corporation (CAF) approved a total of US $ 13.2 billion to finance development initiatives in Latin American and Caribbean countries.
According to the development bank, the impact of these approvals translates, for example, into the fact that more than 2.5 million people will have new or improved drinking water or sewerage connections; approximately 500 km of sewerage networks will be built; and more than 1 million people will benefit from climate vulnerability reduction projects.
In detail, 29% of the approvals (US $ 3,795 million) were used to respond to the crisis generated by Covid-19, including attention to the health emergency and support for fiscal consolidation, an aspect significantly affected by the health crisis. 26.9% of the loans (US $ 3,555 million) were used for economic reactivation, especially in energy, transport and telecommunications infrastructures.
Additionally, through the productive and financial sector, US $ 5,856 million were approved for public and private entities, as well as equity investments and participations in investment funds. In 2021, CAF Asset Management, the manager of private equity debt funds to finance infrastructure, consolidated its presence in the region with US $ 1.5 billion in assets under management, and by 2026 it plans to be operating in 10 CAF member countries.
Also in 2021, CAF’s Board of Directors approved by consensus the highest capitalization in the institution’s history, for US $ 7,000 million, which will allow it to double its portfolio by 2030. The new resources will support the economic reactivation in the shareholder countries, and will contribute to consolidate the multilateral organization as the green bank of Latin America and the Caribbean.
“CAF’s actions in this complex year have provided important support for the countries of the region to overcome the socioeconomic crisis generated by the pandemic. Looking to the future, we will continue to support consensus to face key issues in the region, such as climate change, digitization, increased productivity, integration, the greater role of the private sector and the reduction of inequalities “, said Sergio Díaz-Granados, executive president of CAF.
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