Corporacion Andina de Fomento, the Latin American development lender known as CAF, estimates annual growth of as much as 12 percent in its loan portfolio over the next five years as governments race to make up for years of underinvestment in infrastructure.
Projects including roads and railways will account for more than half of the $11 billion CAF expects to lend this year, Antonio Sosa, vice president for infrastructure, said in an interview in Lima yesterday.
The share of infrastructure projects in CAF’s $15 billion loan portfolio will grow as governments boost investment in transport and energy to keep pace with the region’s economic growth, he said. The International Monetary Fund said April 25 it sees the region growing 3.7 percent this year after rising 4.5 percent last year, led by expansions in Panama and Peru.
“We’re overflowing with requests for financing,” Sosa said. “Countries have to step up investment. Infrastructure systems that were already in a poor state are now congested because of the acceleration in growth.”
CAF, based in Caracas, finances its lending by tapping international capital markets and takes contributions from shareholders, which include the governments of Argentina, Brazil, Colombia, Ecuador, Panama, Peru and Venezuela.
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