CAF's $2.74 Billion Boost for Latin America's Energy Transition

The Development Bank of Latin America and the Caribbean (CAF) has allocated $2.74 billion in loans to aid nine countries in their energy transition and infrastructure development. The bank also signed humanitarian aid agreements and expanded its Caribbean footprint by adding Antigua and Barbuda to its ranks.

The Development Bank of Latin America and the Caribbean (CAF) has committed $2.74 billion in loans to nine nations within the region to support energy transitions, reinforce ecosystems, and enhance infrastructure, announced the bank on Thursday.

Additionally, CAF inked humanitarian aid deals for three countries and authorized six credit agreements for Ecuador totaling $483 million. Antigua and Barbuda joined the bank's membership, CAF mentioned in a statement. 'The Board of Directors at Lima was historic,' remarked CAF Executive President Sergio Diaz-Granados.

'These actions signify CAF's dedication to doubling its portfolio by 2030, enabling us to contribute more significantly to our member nations' development plans and regional integration.' CAF approved finance projects in Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, El Salvador, Honduras, and Peru.

CAF also provided humanitarian aid to alleviate fire damages at a Honduran hospital, assist Ecuador in dealing with heavy rainfall, and support Barbados in hurricane recovery efforts. The Venezuela-based financial institution is a major source of multilateral financing in the region.

The announcement comes early in the Atlantic hurricane season, which has caused severe rain and a hurricane resulting in significant damages across Central America and the eastern Caribbean. CAF has been expanding its presence in the Caribbean, incorporating the Bahamas, Dominica, and Grenada earlier this year. These islands, along with Saint Vincent and the Grenadines and Jamaica, were severely impacted by Hurricane Beryl, the season's first. Caribbean leaders have consistently urged for improved financing options as current structures fail to provide timely aid during disasters.

CAF emphasized its commitment to addressing 'the unique needs of Caribbean islands and small states, which are disproportionately affected by the impacts of climate change.' The bank's expansion is a testament to its growing influence in the region.

(With inputs from agencies.)