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Latin America Fund May Provide Up to $6.8 Billion in Support

  • Fund to offer balance-of-payment support to central banks
  • FLAR in process of structuring potential overseas bond sale
A cemetery worker wears a protective mask at the Nueva Esperanza cemetery in Lima, Peru, on June 17.

A cemetery worker wears a protective mask at the Nueva Esperanza cemetery in Lima, Peru, on June 17.

Photographer: Angela Ponce/Bloomberg
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The Latin American Reserve Fund has the capacity to issue bonds for as much as $4.35 billion to fund loans to central banks in the region as they battle the sharpest economic downturn in decades.

The organization, which normally uses contributions from members to make loans in times of crisis, would issue the bonds in international debt markets, according to Jose Dario Uribe, president of the fund, known by its Spanish acronym FLAR. The fund is currently working on the legal and operational structure, he said.