The portfolio investment of Mexico with the Development Bank of Latin America (CAF) reached 2 billion dollars in 2024, representing a growth of 200 percent compared to 2019, that is, at the beginning of the administration of former president Andrés Manuel López Obrador.
Sergio Díaz-Granados, executive president of CAF, pointed out in an interview with El Financiero that the institution he heads has a very dynamic portfolio in Mexico. "We work with the Mexican financial system, with development banks, and of course, we also have financing that we have provided to the Federal Government, as well as technical cooperations that we have active, especially in the south-southeast of Mexico," he said.
Portfolio investment refers to a credit or loan that a financial institution grants and that forms part of its assets. So far, the largest loan from CAF is destined for Nacional Financiera for a total of 600 million dollars. "The resources from the credit line are intended for foreign trade financing operations, working capital and plant expansions of its clients, financing operations for productive chains, financing for energy projects, and other specific activities," detailed the institution.
It has also allocated significant funds for Banco Nacional de Comercio Exterior (400 million dollars), Glisco Partners III (20.2 million dollars), and Fondo de Fondos México II (386 million dollars), to mention a few. He recalled that Mexico was the first non-Andean country to join CAF in the 90s, and that since that year, the relationship has been very close.
In Mexico, we have our program manager for all of Latin America and the Caribbean. We also have the regional management for Central America operating from Mexico. "We have a very fluid, very close relationship and we are always available to the Ministry of Finance of Mexico, our portfolio investment is distributed across all types of projects within the country," emphasized the executive.
The wave of recession reached this year the entire region of Latin America, mainly due to the uncertainty stemming from Donald Trump's tariff policy. "I do not dare to make a forecast of what will happen here by December; for now, we see projections of a growth reduction for the region of Latin America between 0.3-0.4 percent, although some countries are more exposed due to their relationship with the United States, so they will experience any contagion shock more quickly," he stated.
This Tuesday, May 6, CAF will present its flagship report "Close Solutions," the role of local and regional governments in Latin America and the Caribbean in Brasília, Brazil.
