CAF Doubles Line of Credit Granted to FONPLATA to Boost Infrastructure and Sustainable Development in the Region
December 6, 2024 — The Executive Board of CAF, Development Bank of Latin America and the Caribbean, approved the extension of the uncommitted revolving line of credit granted to FONPLATA in December 2023 and increased it from USD 75 million to USD 150 million.
This strengthens FONPLATA’s capacity to finance strategic projects in its member countries, promoting sustainable development and regional integration.
The new resources of this line of credit will be aimed at three priority areas:
- Infrastructure: Funding of physical and social infrastructure projects, such as housing, urban development, energy, regional integration, and roads.
- Socio-Environmental Development: Support for initiatives in water and sanitation, health, nutrition, education, environment, climate change mitigation and adaptation, and inclusion and gender projects.
- Economic-Productive Development: Support to economic reactivation, financial inclusion, and productivity improvement programs.
“This extension of the line of credit to FONPLATA reaffirms our commitment to the sustainable development of the region and strengthens a strategic alliance of more than 10 years [...]. The integration and cooperation among multilateral financial institutions is critical to maximize our impact on improving the quality of life of Latin-American and Caribbean people”, stated Sergio Díaz-Granados, CAF's Executive President in the press release.
FONPLATA's Executive President, Luciana Botafogo, said: “CAF's support to other sub-regional organizations is essential to achieve sustainable development and Latin American integration. Thanks to this expansion, FONPLATA’s lending capacity to member countries increases, enabling us to achieve positive results with our typical proximity and diligence.”
The Bank has already disbursed USD 75 million in January 2024, under this line of credit, to partially fund the urban renewal and environmental improvement program in Vila Velha, Brazil, and the support program to mitigate the impacts of the water emergency in Uruguay.
With this extension, CAF and FONPLATA strengthen their ties of cooperation and complementarity, consolidating their commitment to work together to identify and develop high-impact projects in their member countries.
12/06/2024