The Development Bank of Latin America and the Caribbean (CAF) has given the green light this Friday to a package of 1 billion dollars (888.4 million euros) to support the most vulnerable communities against the impact of the 'Super Niño', a climatic phenomenon that will hit the region during this year and the next.
The organization has emphasized that "Its effects can slow economic growth due to agricultural, livestock, and fishing losses, damage to infrastructure, lower productivity, disruptions in supply chains, and rising prices," which could worsen the social and economic situation in numerous Latin American countries.
According to CAF, the impact will be "heterogeneous" among the different States, with possible episodes of drought, heat waves, and floods. These climatic alterations could translate into losses of up to 2% of the region's GDP and cause an additional 4.8 million people to fall into poverty.
In light of this scenario, the institution has warned that the current episode of 'El Niño' could become the most intense in the last 100 years. Therefore, the bank has decided to get ahead and make financial resources available to governments to cover emergency measures and strengthen response capacity.
"We are addressing the immediate needs and long-term priorities of our people," said the executive president of CAF, Sergio Díaz-Granados, who also announced the approval of an additional 3.5 billion dollars (3.109 billion euros) for infrastructure, energy, and sustainable mobility initiatives in the region.
CAF Forum in Panama in January 2027
The CAF Latin America and the Caribbean Forum, which will be held in Panama on January 27 and 28, 2027, will be the first major meeting of the region's Economy Ministers specifically focused on the financial management of natural risks and on strengthening fiscal institutionalism in the face of these challenges.
In parallel, CAF will promote the "White Paper on best practices for emergency response to natural disasters" and will launch a technical assistance program aimed at supporting countries in the preparation and execution of actions against natural disasters.