The development bank of Latin America (CAF) announced that it approved an uncommitted revolving credit line for 200 million dollars to the Federal Electricity Commission (CFE) in order to strengthen its liquidity and in support of the economic reactivation of Mexico.
This operation is part of the new CAF’s regional countercyclical facility for up to USD 1.2 billion directed to companies that provide public electricity, gas and water services. With this facility, it is sought to meet the greater liquidity needs of borrowers generated by the Covid-19 pandemic.
In addition, it will help these companies not to commit the necessary resources for the development of critical infrastructure for the countries, as a key element to boost growth in the region, he detailed in a statement.
“This loan is part of the set of support tools against the pandemic that CAF has put at the service of Mexico, in this particular case through support to the CFE, which acts as the leader in the provision of electrical energy in the country in order to strengthen your liquidity and thus contribute to its healthy financial sustainability in the medium and long term, “he said. Renny lopez, Interim Executive President of CAF.
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CAF mentioned that it has played a significant role in support to the venture capital industry in Mexico through investment in funds, with an emphasis on business development for small and medium-sized enterprises.
Last March, the development bank approved the incorporation of Mexico as a full member of the institution, which will allow the country to have greater access to long-term financial resources, as well as technical cooperation for its sustainable development, among other benefits.
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