CAF – Development Bank of Latin America
|Formation||February 7, 1968|
|Type||Multilateral development bank|
|President||Enrique García Rodríguez|
CAF – Development Bank of Latin America, with CAF standing for 'Corporación Andina de Fomento', has the mission of stimulating sustainable development and regional integration by financing projects in the public and private sectors, and providing technical cooperation and other specialized services. Founded in 1970 and currently with 18 member countries from Latin America, the Caribbean, and Europe along with 14 private banks, CAF is one of the main sources of multilateral financing and an important generator of knowledge for the region.
The creation of CAF began to take place in 1966 following the historic signing of the Declaration of Bogotá in the presence of its framers, President Carlos Lleras Restrepo of Colombia, President Eduardo Frei Montalva of Chile, President Raúl Leoni of Venezuela, and the personal representatives of the presidents of Ecuador and Peru. The government of Bolivia would join later in 1967. In 1967, a Joint Commission, set up to address regional issues, mapped out the basic principles of CAF, and on February 7, 1968 the member countries governments signed its Establishing Agreement in San Carlos Palace, Bogotá. The Corporation was conceived as a multipurpose bank and agency for promoting Andean development and integration. Two years later on June 8, 1970, after opening its headquarters in Caracas, Venezuela, CAF formally began operations.
The Cartagena Agreement was signed in May 1969 one year after CAF Establishing Agreement which created the political framework for the Andean subregional group. CAF began operations with a subscribed capital of $25 million.
In 1971, Bolivia and Ecuador became the first countries to receive loans for the execution of projects: a rice storage network ($1.3 million) and a fisheries complex for catching and freezing tropical tuna ($0.5 million).
In April 2012, the Financial Times reported that for infrastructure projects, CAF now provides more funding to Latin America than the World Bank and the Inter-American Development Bank combined. This is partly related to the CAF's less restrictive regulations, especially in regards to the environmental impact of projects.
- Costa Rica
- Dominican Republic
- Trinidad and Tobago
- Alan Beattie (2012-04-02). "World Bank: An exercise of influence" ((registration required)). Financial Times. Retrieved 2012-04-03.