Barbados will have more access to agile and efficient financing with the increase of its shareholding in CAF Development Bank of Latin America and the Caribbean.
Prime Minister Mia Amor Mottley and CAF’s Executive President Sergio Díaz-Granados signed the ordinary capital stock subscription agreement, today at the Lloyd Erskine Sandiford Centre to advance a USD $7 billion capitalisation approved by the Shareholders’ Meeting in March 2022.
Barbados becomes the 16th shareholder to increase its contribution in support of CAF’s commitment to serve as an agile development bank to service the Caribbean and all the countries in the region.
The strengthening of CAF’s equity, which will double the portfolio by 2030, will focus on four key areas: increased green financing to Latin America and the Caribbean; supporting governing entities at the subnational level; promoting regional integration; and enhancing the role of the non-sovereign sector.
“CAF is a strategic partner for the Caribbean in expanding options for financing, technical assistance and knowledge generation. We are therefore grateful for Barbados’ confidence in joining CAF’s historic capitalisation, which will allow us to offer a better service to the country, the Caribbean and Latin America”, said Sergio Díaz-Granados.
Highlighting the significance of the signing, Prime Minister Mottley said: “Thank you also for choosing Barbados. We really believe that your presence here and the Afreximbank, which was launched last week, these two institutions speak volumes as to confidence, not just in Barbados, as a country that has housed banks and other financial services at the regional level, but also to a country that is safe”.
CAF’s increased presence in the Caribbean is consistent with its founding principles to advance regional integration and sustainable development. For more than 50 years, CAF has been deepening its partnerships with the Caribbean with a view to offering greater technical and financial support for economic reactivation and green and blue financing.
The strengthening of CAF’s equity will allow it to double its portfolio to strengthen its role as a partner for sustainable development in Barbados and the Caribbean with more green financing, technical assistance and knowledge products.