The Bahamas has officially completed the process to become a shareholder of Corporación Andina de Fomento (CAF), also known as the Development Bank of Latin America and the Caribbean, unlocking access to a new source of regionally provided funding, according to a statement on the finalization of the Series C shareholding.
The CAF statement explained that its loan facilities are “agile, flexible and innovative”.
CAF’s Executive President Sergio Díaz-Granados said in the statement that CAF understands the development hurdles being faced by nations in the Caribbean and Latin America, and stands ready to assist.
“As a development partner rooted in the region, we understand the unique challenges faced by Caribbean SIDS (small island developing states), the urgency of addressing the effects of climate change, the financing constraints faced by countries that are classified as high- and middle-income, and the need for increased investments in connectivity and resilient infrastructure, particularly in archipelagic states,” said Díaz-Granados.
“We stand ready, as we have done with all our shareholder countries, to collaborate with the government and other stakeholders to build a sustainable and prosperous future for The Bahamas.”
Minister of Economic Affairs Michael Halkitis said in July that the CAF Bill that was ratified this year was done to unlock more concessionary financing for The Bahamas.
Halkitis explained that the country has to pay a subscription fee over two budget periods in order to be eligible to access financing from the bank, at four times the level of the subscription contribution.
He said in July that this year the country would advance $25,006,200 as the first installment of this subscription.
“This milestone follows a successful exploratory mission conducted by CAF in September 2024, during which representatives held constructive discussions with Prime Minister Philip Davis, Minister of Foreign Affairs Frederick Mitchell, Financial Secretary Simon Wilson, and senior officials across multiple ministries,” the CAF statement said.
“The mission sought to align CAF’s financial and technical expertise with The Bahamas’ immediate and medium-term development priorities.
“Like many SIDS, The Bahamas faces disproportionate vulnerabilities to the effects of climate change, including intensifying hurricanes, rising sea levels, and economic shocks.
“As part of its commitment, CAF is working to mobilize new sources of financing to support the government’s mission to strengthen resilience, modernize infrastructure, and drive social and economic progress in The Bahamas.
“In October 2023, CAF was pleased to provide support for the government’s hosting of a regional meeting on Climate Financing in the Americas on the margins of the Fourth Ministerial Meeting on Sustainable Development, organized by the Organization of American States.”
Halkitis said that at the outset, the country will look at accessing resources to support it in the areas of climate change infrastructure, the digital economy, citizen security, and energy.
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Publish date : 2024-12-02 23:25:00
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