Multilateral banks deploy major funding for Latin American infrastructure and stability

Multilateral development banks and international organizations are deploying significant capital across Latin America and the Caribbean for infrastructure, economic stability, and climate resilience.

In Bolivia, the IMF has approved a $1.9 billion financing agreement, with an immediate $214 million disbursement to strengthen international reserves and fiscal stability. Additionally, CAF has approved $224 million for a national road works program covering seven departments.

Honduras is receiving substantial investment for utility improvements. CAF approved $177 million to strengthen the national electrical system, while the Inter-American Development Bank (IDB) approved $70 million to modernize water supply and sanitation services in the Central District, aiming to reduce water loss and improve service for 345,000 people.

Other regional developments include CAF approving $305 million for infrastructure in Argentina, including Buenos Aires subway modernization, and $120 million for Uruguay's state oil company, Ancap, to support energy transition and refinery efficiency. Furthermore, a new regional impact fund has been launched in Costa Rica to mobilize Middle Eastern and institutional capital for mid-sized enterprises in Central America and the Caribbean. To address climate risks, CAF has allocated $1 billion to support vulnerable populations facing the potential impacts of the El Niño phenomenon.