The Development Bank of Latin America- CAF announced this Friday that it has made available to its shareholders a line of Emergency Credit of a countercyclical nature and rapid disbursement for up to 2.5 billion dollars to protect the population and their economies from the expansion of the COVID-19.
This fund will serve to support and complement the fiscal measures that the governments are applying and will allow the authorities to offer a quick and timely response to mitigate the effects of the expansion of COVID-19, contribute to the continuity of business operations and the recovery of economic growth, detailed the CAF in a statement issued in Caracas.
CAF Executive President Luis Carranza Ugarte assured that the objective of this line of credit is to streamline the approval of operations that quickly and effectively support the emergency measures that our countries are adopting to mitigate the effects of COVID-19 on the economy and the quality of life of people. "
"In contingencies like this, our role as development partners of all our shareholder countries is even more relevant," said Carranza.
This initiative is joined by another, announced on March 3, which consists of a contingent credit line of up to $ 50 million per country that has been made "available to shareholders for direct attention from public health systems" .
Authorities also have non-reimbursable technical cooperation resources of up to $ 400,000 per country for initiatives related to this global situation, CAF information added.
In this sense, the executive president of CAF explained that in addition they will continue to "support the banking system" of the countries that are part of the entity and, "as a priority, to development banks so that they can allocate resources to the productive sector, in particular small and medium-sized companies ".
"We will continue making efforts to mobilize resources from third countries and strategic partners with a view to complementing the efforts that our shareholder countries have been making," he stressed.