The Diplomat
The Spanish Government and the CAF-Development Bank of Latin America have signed a Memorandum of Understanding to collaborate in the post-pandemic recovery of Latin America and the Caribbean.
The agreement was signed last Thursday, on the Spanish side, by the Secretary of State for International Cooperation, Pilar Cancela, and the Secretary of Economy and Business Support, Gonzalo García Andrés, and, on the Bank’s side, by CAF’s Executive President, Sergio Díaz-Granados.
The objective of this Memorandum of Understanding is to “strengthen collaboration in development cooperation and catalyze additional resources that will allow the institutions to maximize the impact of their operations” and help the countries of the region to generate “more value” in their current search for “sustainable ways to recover from the economic and social impacts caused by the COVID-19 pandemic,” according to the Spanish Agency for International Development Cooperation (AECID) in a press release.
This agreement, which will be articulated on the side of Spain through AECID, will promote joint initiatives that contribute to support sustainable development and ecological transition in Latin America and the Caribbean and will be key in the implementation of the objectives set by Spain and CAF in terms of climate finance. To this end, the agreement will facilitate access to additional resources in the form of co-financing and grants for operations and initiatives that integrate climate and development objectives in strategic sectors such as water and sanitation, digitalization for development, environment, renewable energies, and sustainable urban transformation.
In her speech, Pilar Cancela highlighted “the important turnaround in the close collaborative relationship that has been maintained with CAF through this new generation agreement, which allows us to lay the groundwork for future co-financing of initiatives of common interest, with a focus on the region’s recovery from the pandemic and urgent climate financing.”
“This agreement will allow us to identify and promote investment opportunities in sectors of common interest that will enhance a sustainable and inclusive economic recovery and contribute to the fight against climate change,” said Gonzalo García Andrés. “This agreement with AECID strengthens our role as a development partner by allowing us to catalyze additional resources that promote high-impact initiatives and reposition Latin American and Caribbean countries on the path to sustainable and inclusive development,” said Sergio Díaz-Granados.
CAF -development bank of Latin America- has the mission of promoting sustainable development and regional integration by financing public and private sector projects, providing technical cooperation and other specialized services. Established in 1970 and currently made up of 19 countries -17 from Latin America and the Caribbean, together with Spain and Portugal- and 13 private banks, it is one of the main sources of multilateral financing and an important generator of knowledge for the region.
