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Saturday, 29 January 2022 02:38

El Salvador will pay US$460 million to become a member of CAF

Written by Evelyn Alas

The Foreign Affairs Committee of the Legislative Assembly issued favorable opinions for the Central Government to ratify the Immunities and Prerogatives Agreement between the Corporación Andina de Fomento (CAF) and the Republic of El Salvador; the Subscription of Guarantee Capital Shares and the Subscription of Ordinary Capital Shares between the Andean Development Corporation and El Salvador and incorporation as a Member Country.

However, in order for El Salvador to become a member of the corporation, it must acquire shares in which it must pay US$65 million for seven years, or US$460 million in total.

The organization promotes initiatives, through financial forums, that allow countries to achieve their development and promote projects that would otherwise be difficult to afford.

Likewise, CAF establishes 17 steps that must be fulfilled as a country to be considered as a member state, among them is the subscription of agreements and immunities.

The director of Legal Affairs of the Ministry of Foreign Affairs, Karla Quintanilla, assured that the country will obtain financing by being a member of the CAF.

Among the benefits that El Salvador would have by being part of said organization is the possibility of executing projects that would place it at a high level of sustainable development, in comparison to other Latin American nations that are already part of the corporation, such as Ecuador, Chile and Peru and that have been able to obtain funds in favor of their regions through different financial institutions.

The deputy of the Nuestro Tiempo party, Johnny Whight, points out that the Commission continues with the eagerness to increase the public debt and with this agreement they are trying to join the association to obtain more financing.

With the adhesion to the international organization, it would be possible to have access to credits, with special conditions, with the Development Bank of Latin America, which provides multiple banking services to clients of the public and private sector of the shareholder countries.

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