CAF drives productive and institutional modernization in Panama and the Dominican Republic
The Development Bank has authorized strategic resources to strengthen small and medium-sized enterprises (SMEs) and the agribusiness sector in Panama, along with water and prison reform projects in the Dominican Republic.
These operations are designed to improve sectoral competitiveness and citizens' quality of life in both countries.
Productive and agribusiness development in Panama
In Panama, the institution approved an A/B syndicated loan of up to $500 million in favor of the National Bank of Panama (Banconal).
The structure of this financing allows CAF to contribute $150 million in Tranche A, while Tranche B mobilizes $350 million from international financial institutions and impact funds.
The resources will be channeled by Banconal to the agribusiness and agricultural sectors, with a special emphasis on projects located in rural areas.
Water security and institutional reform in the Dominican Republic
Simultaneously, CAF authorized two financial operations for the Dominican Republic totaling $566 million.
The first, for an amount of $300 million, will finance the Hatillo Dam–Santo Domingo Aqueduct Project. This work, carried out by the Santo Domingo Aqueduct and Sewer Corporation (CAASD), will expand the supply of drinking water by 5 cubic meters per second, directly impacting 2.7 million people.
The second operation, of $266 million, will be allocated to the Prison System Reform and Modernization Program. Additionally, the program includes technical cooperation to implement artificial intelligence solutions aimed at measuring the carbon footprint, reinforcing the country's sustainability strategy.
Under the direction of the Ministry of Housing, Habitat and Construction, the goal is to improve the infrastructure of correctional centers to promote effective social reintegration and reduce recidivism rates, thus strengthening citizen security.
Commitment to regional growth
Sergio Díaz-Granados, CAF's executive president, highlighted that these operations reflect the institution's commitment to comprehensive development.
It is expected to benefit more than 3,300 SMEs, including at least 1,000 led by women.
