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CAF – Development Bank of Latin America and the Caribbean
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<h2 id="history">History</h2> <p>The initiative that would lead to the establishment of CAF began to materialize in 1966, following the signing of the <a href="/facts/Bogota_Declaration/3c6CRNIc">Bogotá Declaration</a> by the presidents of <a href="/facts/Colombia/nl7r8Q2u">Colombia</a>, <a href="/facts/Chile/uEyTfEcx">Chile</a>, <a href="/facts/Venezuela/eX1qnkln">Venezuela</a>, and the personal representatives of the heads of state of <a href="/facts/Ecuador/Tdv7czY4">Ecuador</a> and <a href="/facts/Peru/dBt7XrYD">Peru</a>. This declaration approved an immediate action program for the Andean countries and Chile, outlining measures for economic integration and the coordination of policies in trade, industry, finance, and technical cooperation services among the participating nations. In response to these needs, a Joint Commission was appointed to oversee these functions, proposing the creation of a development corporation, ultimately resulting in the formation of the Andean Development Corporation (CAF). </p><p>During 1967, the Joint Commission distinctly outlined the foundations of CAF. On <a href="/facts/February_7/CQCdJqUw">February 7</a>, 1968, the governments of the member countries signed the Constitutive Agreement at the <a href="/facts/Palacio_de_San_Carlos%2c_Bogot%25C3%25A1/lqTA6rIE">San Carlos Palace</a> in Bogotá, conceiving the entity as a multiple bank and agency for the promotion of development and Andean integration. Two years later, on June 8, 1970, CAF formally commenced operations, establishing its headquarters in Caracas, Venezuela. </p><p>The <a href="/facts/Cartagena_Agreement/H5tmzTuI">Cartagena Agreement</a>, approved in May 1969 - one year after the Constitutive Agreement of CAF - established the political framework of the Andean subregional group and proposed the adoption of a joint model of economic, social and commercial development between countries that had similar characteristics. and that they sought to obtain the benefits that, in the regional integration scheme of the time (<a href="/facts/Latin_American_Integration_Association/9lgp4t6N">LAFTA</a>), were generally reserved for the largest nations. To this end, it incorporated instruments related to the adoption of common strategies for industrial, energy, and agricultural development, as well as research and technological transfer, capital investment, construction of physical infrastructure and human trafficking, among others. </p><p>Bolivia and Ecuador were the first two countries that, in 1971, received loans from CAF for the execution of projects related to the installation of a rice storage network (US$ 1.3 million) and the construction of a fishing complex for the capture and freezing of tropical tuna (US$ 0.5 million). However, the first loan that materialized the integrationist vocation of the Organization was made a year later, and was granted to a Venezuelan project (US$ 3 million). The objective of this project was the construction of a bridge over the <a href="/facts/El_Lim%25C3%25B3n_River/WR72YCqf">Limón River</a>, in the State of Zulia, with the purpose of facilitating road connections with Colombia. </p><p>The decision to open its share capital to other partners from Latin America and the Caribbean in the early nineties was a significant development that allowed for the expansion of both CAF's integrationist mission and its operational base beyond its then Andean borders. </p><p>Portugal was the 18th shareholder country to become part of the bank. The formalization of the incorporation of that country, through the subscription of €15 million to the ordinary capital of the institution and €60 million to the guarantee capital, was carried out within the framework of the XIX Ibero-American Summit of Heads of State and Government, in Estoril. Barbados was the 19th shareholder country to become part of the bank. </p><p>Currently, in addition to four countries of the Andean Community, its shareholders include: <a href="/facts/Argentina/aFSA5bAk">Argentina</a>, <a href="/facts/Barbados/ywYtqmRB">Barbados</a>, <a href="/facts/Bolivia/YNBoDKKR">Bolivia</a>, <a href="/facts/Brazil/QHkG46GL">Brazil</a>, <a href="/facts/Chile/uEyTfEcx">Chile</a>, <a href="/facts/Colombia/nl7r8Q2u">Colombia</a>, <a href="/facts/Costa_Rica/baw0GTI1">Costa Rica</a>, <a href="/facts/Ecuador/Tdv7czY4">Ecuador</a>, <a href="/facts/Spain/bIyrB8EY">Spain</a>, <a href="/facts/Jamaica/jeDulmwE">Jamaica</a>, <a href="/facts/Mexico/IT5bwhdh">Mexico</a>, <a href="/facts/Panama/GckVVhnp">Panama</a>, <a href="/facts/Paraguay/sbzfv4Rl">Paraguay</a>, <a href="/facts/Peru/dBt7XrYD">Peru</a>, <a href="/facts/Portugal/lYzwDQ63">Portugal</a>, <a href="/facts/Dominican_Republic/u36V3Nsb">Dominican Republic</a>, <a href="/facts/Trinidad_and_Tobago/jTXQP4Fe">Trinidad and Tobago</a>, <a href="/facts/Uruguay/X6V0apCb">Uruguay</a>, <a href="/facts/Venezuela/eX1qnkln">Venezuela</a>, and 13 private banks in the region. On March 8, 2022, <a href="/facts/El_Salvador/6Plzw4vr">El Salvador</a> joined as the 20th partner and the first as a full member. <a href="/facts/Honduras/75jMlRQ1">Honduras</a> officially became a member on July 18, 2022, becoming the 21st partner. </p> <h2 id="15-full-member-states">15 Full Member states</h2> <ul><li><a href="/facts/Argentina/aFSA5bAk">Argentina</a></li> <li><a href="/facts/Bolivia/YNBoDKKR">Bolivia</a></li> <li><a href="/facts/Brazil/QHkG46GL">Brazil</a></li> <li><a href="/facts/Chile/uEyTfEcx">Chile</a></li> <li><a href="/facts/Colombia/nl7r8Q2u">Colombia</a></li> <li><a href="/facts/Dominican_Republic/u36V3Nsb">Dominican Republic</a></li> <li><a href="/facts/Ecuador/Tdv7czY4">Ecuador</a></li> <li><a href="/facts/El_Salvador/6Plzw4vr">El Salvador</a></li> <li><a href="/facts/Honduras/75jMlRQ1">Honduras</a></li> <li><a href="/facts/Panama/GckVVhnp">Panama</a></li> <li><a href="/facts/Paraguay/sbzfv4Rl">Paraguay</a></li> <li><a href="/facts/Peru/dBt7XrYD">Peru</a></li> <li><a href="/facts/Trinidad_and_Tobago/jTXQP4Fe">Trinidad and Tobago</a></li> <li><a href="/facts/Uruguay/X6V0apCb">Uruguay</a></li> <li><a href="/facts/Venezuela/eX1qnkln">Venezuela</a></li></ul> <h2 id="6-member-states-shareholder-categorie-c">6 Member states, shareholder categorie "C"</h2> <ul><li><a href="/facts/Barbados/ywYtqmRB">Barbados</a></li> <li><a href="/facts/Costa_Rica/baw0GTI1">Costa Rica</a></li> <li><a href="/facts/Jamaica/jeDulmwE">Jamaica</a></li> <li><a href="/facts/Mexico/IT5bwhdh">Mexico</a></li> <li><a href="/facts/Portugal/lYzwDQ63">Portugal</a></li> <li><a href="/facts/Spain/bIyrB8EY">Spain</a></li></ul> <h2 id="see-also">See also</h2> <ul> <li>Banks portal</li></ul> <ul><li><a href="/facts/Bank_of_the_South/haxCIetM">Bank of the South</a></li> <li><a href="/facts/Caribbean_Development_Bank/dSFTBaS4">Caribbean Development Bank</a></li></ul> <h2 id="external-links">External links</h2> <ul><li><a href="https://www.caf.com/">Official website</a></li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>Staff writer (2024). "Development Bank of Latin America (CAF)". UIA Global Civil Society Database. uia.org. Brussels, Belgium: Union of International Associations. Yearbook of International Organizations Online. Retrieved 1 February 2025. <a href="https://uia.org/s/or/en/1100047011" target="_blank">https://uia.org/s/or/en/1100047011</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>"CAF development bank loans $2.7 billion across Latin America, Caribbean". Reuters. 19 July 2024. Retrieved 7 September 2024. <a href="https://www.reuters.com/business/energy/caf-development-bank-loans-27-billion-across-latin-america-caribbean-2024-07-18/" target="_blank">https://www.reuters.com/business/energy/caf-development-bank-loans-27-billion-across-latin-america-caribbean-2024-07-18/</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>"Dónde estamos (CAF)". <a href="https://www.caf.com/es/sobre-caf/" target="_blank">https://www.caf.com/es/sobre-caf/</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> </ol>