The Development Bank of Latin America and the Caribbean (CAF) and South Korea are ready for the realization of development objectives, according to Sergio Diaz-Granados, president of CAF.
"It's not just about how long we've worked together — what stands out is the shift from isolated efforts to more structured, consistent collaboration, grounded in growing mutual understanding and institutional alignment," Diaz-Granados told The Korea Herald in a written interview, asked about the way the CAF-Korea relationship has matured over time.
"One clear example of this progress is the use of framework-based financial tools, like the recent renewal of the $200 million interbank credit facility with Korea Eximbank and the co-financing agreement," he said, adding that such mechanisms facilitate joint financing while ensuring robust risk management and adherence to development standards.
Eximbank and CAF signed a credit facility to back Korean exports and related business, along with a co-financing pact to support joint funding and economic development in CAF member countries.
The partnership centers on sustainable infrastructure with Korean participation, while Korea leverages the credit line to strengthen ties with Latin America and the Caribbean, expand trade, diversify value chains, and attract investment for sustainable growth.
According to Diaz-Granados, Korean companies can leverage CAF's framework-based mechanisms and joint financing while ensuring risk management and development standards for regional integration in Latin America and the Caribbean.
Korean companies can provide cross-border solutions in transport, energy, digital infrastructure and industrial platforms, Diaz-Granados noted.
CAF's regional mandate enables Korean companies to turn regional integration goals into practical cross-border investments, building shared infrastructure and institutional frameworks that enhance cohesion, productivity and resilience.
"Initiatives like Korea's knowledge sharing program have allowed us to partner on practical projects that help shape public policy and strengthen institutional capacity in several of our member countries," he added.
"We now have an ongoing dialogue that supports a pragmatic, forward-looking partnership. All of this reflects a relationship that is not only stable and effective but also increasingly focused on tackling shared development goals."
Diaz-Granados said CAF scales Korean technology, finance and innovation across Latin America and the Caribbean by using standardized frameworks, combining financing with policy dialogue and turning individual projects into long-term regional partnerships.
He underlined that CAF is prioritizing resilient urban, transport, energy and digital projects, integrating planning, sustainability and inclusion to align with Korea's expertise and maximize long-term impact.
"By combining long-term vision, regional scale and strong institutional frameworks, CAF is able to mobilize financing rapidly and at volume, while ensuring that investments contribute to a just energy transition, resilient infrastructure and inclusive growth across Latin America and the Caribbean," he concluded.
sanjaykumar@heraldcorp.com
