17 August, 2022

El Salvador signs the share subscription agreement to join CAF

El Salvador joins CAF

El Salvador ratified its intention to join the Development Bank of Latin America as a member country (CAF) with the signing of the agreement and the subscription of registered shares of Series "B" corresponding to the ordinary capital of the banking entity.

The agreement with CAF was signed by the Minister of Finance, Jose Alejandro Zelaya, and the executive president of the institution, Sergio Diaz-Granados.

Editorial Dept. Voz de la Diaspora

El Salvador ratified its intention to join the Development Bank of Latin America as a member country (CAF) with the signing of the agreement and the subscription of registered shares of Series "B" corresponding to the ordinary capital of the banking entity.

The executive president of the institution, Sergio Díaz-Granados said that the agreement is a great step that will give a greater Latin American and Caribbean dimension by incorporating new Central American countries., which will imply that CAF will be able to address strategic issues for the country, and the rest of the region focused on sustainable development, and integration.

The incorporation of El Salvador to CAF will also make it possible to establish a relationship of mutual benefit by supporting the reactivation, and accompanying the countries of the region in their transition towards greener and more inclusive economies, In addition, it strengthens the bank's equity to grant greater resources to shareholders in better financial conditions..

For his part, the Salvadoran Treasury Minister, José Alejandro Zelaya said that after 61 years, El Salvador joins a new multilateral bank, which will allow it to steer development policies.

The agreement was signed in Cartagena de Indias, Colombia at the end of the last session of the CAF Board of Directors, and defines the steps to follow for the full incorporation of El Salvador as a member of the bank.

Among the benefits that the Central American country will receive is access to new sources of financing, technical assistance resources and specialized knowledge that would help improve social conditions, and the competitiveness and international insertion of the country, explained the multilateral.

CAF is integrated by 19 countries, of which 17 are from Latin America and the Caribbean, Spain and Portugal- in addition to 13 private banks.