CAF - Development Bank of Latin America and the Caribbean, formerly the Andean Development Corporation (or Corporación Andina de Fomento), is a

Caracas Caracas ( , ), officially Santiago de León de Caracas (CCS), is the capital and largest city of Venezuela, and the center of the Metropolitan Region of Caracas (or Greater Caracas). Caracas is located along the Guaire River in the northern p ...

based

development bank Development finance institution (DFI), also known as a Development bank, is a financial institution that provides risk capital for economic development projects on a non-commercial basis. DFIs are often established and owned by governments or ...

whose mission is to promote sustainable development and regional integration in

Latin America Latin America is the cultural region of the Americas where Romance languages are predominantly spoken, primarily Spanish language, Spanish and Portuguese language, Portuguese. Latin America is defined according to cultural identity, not geogr ...

and

the Caribbean The Caribbean ( , ; ; ; ) is a region in the middle of the Americas centered around the Caribbean Sea in the North Atlantic Ocean, mostly overlapping with the West Indies. Bordered by North America to the north, Central America to the west, a ...

, through the financing of projects of the public and private sectors, the provision of technical cooperation and other specialized services. Established on February 7, 1968, it commenced operations in June 1970. Currently composed of 23 countries from

, the

Caribbean The Caribbean ( , ; ; ; ) is a region in the middle of the Americas centered around the Caribbean Sea in the Atlantic Ocean, North Atlantic Ocean, mostly overlapping with the West Indies. Bordered by North America to the north, Central America ...

Europe Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...

, and 13 private banks, it stands as one of the principal sources of multilateral financing and a significant knowledge generator for the region. CAF is a multilateral financial institution whose mission is to support the sustainable development of its shareholder countries and regional integration. It serves the public and private sectors, providing multiple financial products and services to a broad client portfolio, made up of the governments of the shareholder States, financial institutions and public and private companies. Its primary activities encompass acting as a financial intermediary, channeling resources from industrialized nations to the region, funding the development of productive infrastructure, promoting overall development, fostering trade and investments, and supporting the business sector. The CAF has its main headquarters in

and offices in

Asunción Asunción (, ) is the capital and the largest city of Paraguay. The city stands on the eastern bank of the Paraguay River, almost at the confluence of this river with the Pilcomayo River. The Paraguay River and the Bay of Asunción in the north ...

Bogotá Bogotá (, also , , ), officially Bogotá, Distrito Capital, abbreviated Bogotá, D.C., and formerly known as Santa Fe de Bogotá (; ) during the Spanish Imperial period and between 1991 and 2000, is the capital city, capital and largest city ...

Brasília Brasília ( ; ) is the capital city, capital of Brazil and Federal District (Brazil), Federal District. Located in the Brazilian highlands in the country's Central-West Region, Brazil, Central-West region, it was founded by President Juscelino ...

Buenos Aires Buenos Aires, controlled by the government of the Autonomous City of Buenos Aires, is the Capital city, capital and largest city of Argentina. It is located on the southwest of the Río de la Plata. Buenos Aires is classified as an Alpha− glob ...

La Paz La Paz, officially Nuestra Señora de La Paz (Aymara language, Aymara: Chuqi Yapu ), is the seat of government of the Bolivia, Plurinational State of Bolivia. With 755,732 residents as of 2024, La Paz is the List of Bolivian cities by populati ...

Lima Lima ( ; ), founded in 1535 as the Ciudad de los Reyes (, Spanish for "City of Biblical Magi, Kings"), is the capital and largest city of Peru. It is located in the valleys of the Chillón River, Chillón, Rímac River, Rímac and Lurín Rive ...

Madrid Madrid ( ; ) is the capital and List of largest cities in Spain, most populous municipality of Spain. It has almost 3.5 million inhabitants and a Madrid metropolitan area, metropolitan area population of approximately 7 million. It i ...

Mexico City Mexico City is the capital city, capital and List of cities in Mexico, largest city of Mexico, as well as the List of North American cities by population, most populous city in North America. It is one of the most important cultural and finan ...

Montevideo Montevideo (, ; ) is the capital city, capital and List of cities in Uruguay, largest city of Uruguay. According to the 2023 census, the city proper has a population of 1,302,954 (about 37.2% of the country's total population) in an area of . M ...

Panama City Panama City, also known as Panama, is the capital and largest city of Panama. It has a total population of 1,086,990, with over 2,100,000 in its metropolitan area. The city is located at the Pacific Ocean, Pacific entrance of the Panama Canal, i ...

Port of Spain Port of Spain ( ; Trinidadian and Tobagonian English, Trinidadian English: ''Port ah Spain'' ) is the capital and chief port of Trinidad and Tobago. With a municipal population of 49,867 (2017), an urban population of 81,142 and a transient dail ...

Quito Quito (; ), officially San Francisco de Quito, is the capital city, capital and second-largest city of Ecuador, with an estimated population of 2.8 million in its metropolitan area. It is also the capital of the province of Pichincha Province, P ...

San Salvador San Salvador () is the Capital city, capital and the largest city of El Salvador and its San Salvador Department, eponymous department. It is the country's largest agglomeration, serving as the country's political, cultural, educational and fin ...

Santiago de Chile Santiago (, ; ), also known as Santiago de Chile (), is the capital city, capital and largest city of Chile and one of the largest cities in the Americas. It is located in the country's Chilean Central Valley, central valley and is the center ...

Santo Domingo Santo Domingo, formerly known as Santo Domingo de Guzmán, is the capital and largest city of the Dominican Republic and the List of metropolitan areas in the Caribbean, largest metropolitan area in the Caribbean by population. the Distrito Na ...

and

São Paulo São Paulo (; ; Portuguese for 'Paul the Apostle, Saint Paul') is the capital of the São Paulo (state), state of São Paulo, as well as the List of cities in Brazil by population, most populous city in Brazil, the List of largest cities in the ...

History

The initiative that would lead to the establishment of CAF began to materialize in 1966, following the signing of the Bogotá Declaration by the presidents of

Colombia Colombia, officially the Republic of Colombia, is a country primarily located in South America with Insular region of Colombia, insular regions in North America. The Colombian mainland is bordered by the Caribbean Sea to the north, Venezuel ...

Chile Chile, officially the Republic of Chile, is a country in western South America. It is the southernmost country in the world and the closest to Antarctica, stretching along a narrow strip of land between the Andes, Andes Mountains and the Paci ...

Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and many Federal Dependencies of Venezuela, islands and islets in the Caribbean Sea. It com ...

, and the personal representatives of the heads of state of

Ecuador Ecuador, officially the Republic of Ecuador, is a country in northwestern South America, bordered by Colombia on the north, Peru on the east and south, and the Pacific Ocean on the west. It also includes the Galápagos Province which contain ...

and

Peru Peru, officially the Republic of Peru, is a country in western South America. It is bordered in the north by Ecuador and Colombia, in the east by Brazil, in the southeast by Bolivia, in the south by Chile, and in the south and west by the Pac ...

. 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). During 1967, the Joint Commission distinctly outlined the foundations of CAF. On

February 7 Events Pre-1600 * 457 – Leo I becomes the Eastern Roman emperor. * 987 – Bardas Phokas the Younger and Bardas Skleros, Byzantine generals of the military elite, begin a wide-scale rebellion against Emperor Basil II. * 1301 & ...

, 1968, the governments of the member countries signed the Constitutive Agreement at the San Carlos Palace 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. The

Cartagena Agreement Cartagena or Carthagena may refer to: Places Chile *Cartagena, Chile, a commune in Valparaíso Region Colombia *Cartagena, Colombia, a city in the Bolívar Department, the largest city with this name **Roman Catholic Archdiocese of Cartagena, an ...

, 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 ( LAFTA), 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. 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 Limón River, in the State of Zulia, with the purpose of facilitating road connections with Colombia. 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. 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. Currently, in addition to four countries of the Andean Community, its shareholders include:

Argentina Argentina, officially the Argentine Republic, is a country in the southern half of South America. It covers an area of , making it the List of South American countries by area, second-largest country in South America after Brazil, the fourt ...

Barbados Barbados, officially the Republic of Barbados, is an island country in the Atlantic Ocean. It is part of the Lesser Antilles of the West Indies and the easternmost island of the Caribbean region. It lies on the boundary of the South American ...

Bolivia Bolivia, officially the Plurinational State of Bolivia, is a landlocked country located in central South America. The country features diverse geography, including vast Amazonian plains, tropical lowlands, mountains, the Gran Chaco Province, w ...

Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...

Costa Rica Costa Rica, officially the Republic of Costa Rica, is a country in Central America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as Maritime bo ...

Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...

Jamaica Jamaica is an island country in the Caribbean Sea and the West Indies. At , it is the third-largest island—after Cuba and Hispaniola—of the Greater Antilles and the Caribbean. Jamaica lies about south of Cuba, west of Hispaniola (the is ...

Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...

Panama Panama, officially the Republic of Panama, is a country in Latin America at the southern end of Central America, bordering South America. It is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and ...

Paraguay Paraguay, officially the Republic of Paraguay, is a landlocked country in South America. It is bordered by Argentina to the Argentina–Paraguay border, south and southwest, Brazil to the Brazil–Paraguay border, east and northeast, and Boli ...

Portugal Portugal, officially the Portuguese Republic, is a country on the Iberian Peninsula in Southwestern Europe. Featuring Cabo da Roca, the westernmost point in continental Europe, Portugal borders Spain to its north and east, with which it share ...

Dominican Republic The Dominican Republic is a country located on the island of Hispaniola in the Greater Antilles of the Caribbean Sea in the Atlantic Ocean, North Atlantic Ocean. It shares a Maritime boundary, maritime border with Puerto Rico to the east and ...

Trinidad and Tobago Trinidad and Tobago, officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean, comprising the main islands of Trinidad and Tobago, along with several List of islands of Trinidad and Tobago, smaller i ...

Uruguay Uruguay, officially the Oriental Republic of Uruguay, is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast, while bordering the Río de la Plata to the south and the A ...

, and 13 private banks in the region. On March 8, 2022,

El Salvador El Salvador, officially the Republic of El Salvador, is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador's capital and largest city is S ...

joined as the 20th partner and the first as a full member.

Honduras Honduras, officially the Republic of Honduras, is a country in Central America. It is bordered to the west by Guatemala, to the southwest by El Salvador, to the southeast by Nicaragua, to the south by the Pacific Ocean at the Gulf of Fonseca, ...

officially became a member on July 18, 2022, becoming the 21st partner. The Bahamas became a shareholder in November of 2024, and Antigua and Barbuda became the newest member of the bank on May 2, 2025, joining as a "Series C Shareholder."

15 Full Member states

Bahamas The Bahamas, officially the Commonwealth of The Bahamas, is an archipelagic and island country within the Lucayan Archipelago of the Atlantic Ocean. It contains 97 per cent of the archipelago's land area and 88 per cent of its population. ...

6 Member states, shareholder categorie "C"

Antigua and Barbuda Antigua and Barbuda is a Sovereign state, sovereign archipelagic country composed of Antigua, Barbuda, and List of islands of Antigua and Barbuda, numerous other small islands. Antigua and Barbuda has a total area of 440 km2 (170 sq mi), ...

References

External links

* {{Authority control 1968 in international relations 1968 establishments in South America Banks established in 1968 Organizations established in 1968 Multilateral development banks Organizations based in Caracas Andean Community

History

15 Full Member states

6 Member states, shareholder categorie "C"

See also

References

External links