Honduras expressed its interest in becoming a full member of CAF - Development Bank of Latin America - as soon as possible, as expressed by the President of the Republic, Iris Xiomara Castro, in a formal communication issued by Foreign Minister Eduardo Enrique Reina.
The Foreign Minister stated in the letter delivered to CAF at the UN-Habitat Assembly in New York: "The Government of Honduras hereby formally expresses its interest in becoming a member of the Andean Development Corporation (CAF), with the objective of having diverse and adequate financial tools and instruments that allow it to manage operations with components of institutional strengthening, modernisation of the State, support for the regulatory framework for investment, productivity and competitiveness; transversalised by transparency and environmental protection".
With the incorporation of Honduras into CAF, the country is committed to strengthening its regional presence and accessing sources of financing, technical assistance and knowledge generation that will improve the well-being of the population and competitiveness. The government and the organisation's authorities will review the roadmap for the Central American country to become CAF's twenty-first member.
"We are very pleased to receive this good news from the Government of Honduras to join CAF, which will allow us to expand our presence in Central America and thus work together for the protection of our common home and the economic and social reactivation of the people. We are committed to the local authorities and the other multilaterals present in Honduras to join and complement efforts in favour of the most vulnerable," said Sergio Díaz-Granados, CAF's executive president.
Honduras and CAF are planning an agile and efficient process to move forward with the incorporation, like the one carried out with El Salvador last March. It is worth noting that the Dominican Republic and Costa Rica recently became full members.
The incorporation of new shareholders and the expansion of the institution's geographic scope is complemented by the largest capital increase in its history, for a total amount of USD 7 billion. This capital increase, approved by CAF's Shareholders' Meeting, will allow it to double its portfolio by 2030 and turn the multilateral organisation into the Bank for economic reactivation and the Green Bank of Latin America and the Caribbean over the next decade.
CAF is a multilateral financial institution whose mission is to support the sustainable development of its shareholder countries and the integration of Latin America. Its shareholders are: Argentina, Barbados, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Jamaica, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Trinidad and Tobago, Uruguay, Venezuela and 13 private banks in the region. It serves the public and private sectors, providing multiple products and services to a broad client base of shareholders, private companies and financial institutions.