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Uruguay signed a capitalization agreement with CAF

The development bank of Latin America and the Caribbean reached an agreement with the government that must be ratified by Parliament.

Uruguay signed a capitalization agreement with the CAF-Development Bank of Latin America and the Caribbeanan agreement that must now be approved by the Legislative power and which, according to the multilateral organization, will contribute to the development of the country.

“The signing of this capitalization agreement marks an important milestone in our relationship, an alliance that will strengthen the foundations for a more prosperous and sustainable future for the country and our region,” he said. Sergio Diaz-Granados, Executive President of CAF.

The organization has committed to carrying out its tenth equity strengthening with its shareholders and to promote a capitalization of 7 billion dollars in the region, which will allow it to double its portfolio by 2030. Based on this, the institution will be able to deepen its role as a green bank, as well as that of the economic and social reactivation of its member countries.

“With the signing of this capitalization agreement, Uruguay is expressing its strong commitment to CAF “as a cooperative. This commitment is one of the factors most highlighted by the credit rating agencies that evaluate CAF and that allows it to raise funds in international financial markets under competitive conditions. This ultimately results in lower financing costs for the country,” said Díaz-Granados.

Financing and resources

According to the entities, Uruguay “will have the opportunity to benefit from CAF financing and multiply its capacity to execute projects, with agile response times.

On the other hand, “you will be able to access more resources for non-reimbursable technical cooperation aimed at the preparation of studies of feasibility to finance quality projects and support high-impact projects.”

Meanwhile, the loan would also contribute to boosting the generation of knowledge in the country, focusing on different topics such as the care of the environmentthe child povertythe protection of vulnerable populations, water security, coastal protection, water management, floods and droughtsphysical and commercial integration, road and rail infrastructure, energy transformation, among others.

Source: Ambito

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