Latin American countries: CAF will co-finance action projects that boost employment

The Covid-19 pandemic highlighted the need for international cooperation to mitigate its adverse effects and to promote well-being and economic and social reactivation. The Development Bank of Latin America (CAF) and the European Investment Bank (EIB) capitalize on their complementary strengths and place them at the service of sustainable development and integration in Latin America and the Caribbean to mitigate the investment gap in infrastructure, they explained spokesmen for both institutions.

CAF and the EIB signed a collaborative co-financing framework for European support to Latin America and the Caribbean to mitigate the damage of the pandemic and promote post-pandemic economic recovery. The agreement proposes a framework for cofinancing for US $ 500 million, to benefit sectors such as transportation, energy, water and sanitation, urban development, health, education and financial intermediation aimed at SMEs, among other strategic sectors for both institutions.

“Investments in integration infrastructure in the region are essential to promote economic and social reactivation. We are a key partner for the development of our shareholder countries and we seek to complement ourselves with strategic allies such as the EIB in this opportunity to attract resources that allow us to carry out works that promote competitiveness”, said Luis Carranza Ugarte, CAF’s executive president. EIB Vice President Ricardo Mourinho Félix, responsible for Latin America, said: “The signing of this collaboration framework shows the commitment of the European Investment Bank to Latin America and the Caribbean in these difficult times.”

G. Febres

With information from international media, agencies and CAF statement