15 May 2012: The Andean Community (CAN) Secretariat recently held discussions with development banks in the region on current best practices for loan products and financing programs for sustainable development and the environment in the four CAN countries (Bolivia, Colombia, Ecuador and Peru).
The discussion was the centerpiece of the Fourth Meeting of the CAN Development Banks, held 10 May 2012, in Quito, Ecuador. The meeting was attended by representatives of Bolivia’s Productive Development Bank (BDP), Colombia’s Foreign Trade Bank (BANCOLDEX), Ecuador’s National Financial Corporation (CFN), Peru’s Development Finance Corporation (COFIDE) and the Latin American Development Bank (CAF).
Participants noted that financing sustainable development projects is a relatively new issue for the region and therefore constitutes a major challenge. They noted the need to train specific teams to understand the context and realities involved in such projects or programs.
CAF gave a presentation on possible funding for sustainable development and environment at the regional level. BDP discussed its Cleaner Production Program, forest financing, special window for integrated forest management, and the sectoral credit for quinoa. BANCOLDEX presented its model of environmental management. It said that the role of development banks is to, inter alia, design both financial and non-financial instruments that enable or give preference to mitigation projects, and to catalyze transformative sustainable production processes.
The CFN representative discussed its Forestry Financing Program and the social, environmental and safety benefits of its support for automotive fleet renewal in Ecuador, with cars meeting higher emissions and safety standards. COFIDE’s presentation on its access to better financial terms than other banks led to a request from the CAN General Secretariat to meet separately with COFIDE officials to discuss such funding and financing options.
Participants agreed to hold a workshop in Bolivia on developing micro-finance and micro-insurance for sustainable development purposes in CAN. [CAN Press Release (Spanish)]