Loan granted to Venezuelan tourism sector
- Entry of seven banks as shareholders authorized, including Banco Mercantil of Venezuela.
- The agreements were approved by the 66th meeting of the CAF Board, held yesterday in Caracas.
- Technical cooperation for Bolivia’s privatization program.
Another important agreement approved by the meeting - which was chaired by Bolivian Planning and Coordination Minister Enrique García - was authorization for seven private banks from the subregion to subscribe to series “B” shares, including Banco Mercantil of Venezuela.
These financial institutions join five banks from Peru and Bolivia which were the first institutions authorized to subscribe this type of share last October.
The financial institutions now authorized to subscribe CAF shares are: Bolivia. Banco de Santa Cruz, Banco Mercantil and Banco Industral; Ecuador: Banco de Guayaquil, Filanbanco and Banco Continental; Peru: Banco de Crédito, Banco de Lima, Banco Popular, Banco del Sur and Banco Wiese; and Venezuela: Banco Mercantil.
Loan for tourism
The program consists of granting credits to private companies to finance construction, remodeling and equipping of hotels of all categories, along with tourism services related to the project. These operations will generate foreign currency and jobs, stimulate subregional economies and lead to a more balanced development in the country.
By expanding hotel facilities, the program will immediately generate jobs in the construction sector and in operating and maintenance activities. In the longer term, jobs will be created in various sectors of economic activity, such as food preparation, crafts and transport.
The tourism sector is one of CAF’s priority fields of action as a potential generator of foreign currency and employment for its member countries.
In the case of Venezuela, despite its excellent location and significant tourism resources, the sector has not been adequately developed. Until the mid-1980s, the hotel sector was mainly used to meet urban demand (Caracas), and concentrated in only a couple of states - Margarita Island (Nueva Esparta state) and the Barcelona/Puerto La Cruz corridor (Anzoátegui state) - which absorb most of the investment in tourism. Apart from optimizing the tourism potential of this area, the program will stimulate the sector in other states.
CAF recently granted Venezuela a US$42 million loan to the petrochemical industry - another priority sector - for construction of a modern plant to produce ethylene oxide and ethylene glycol in Santa Rita, Zulia state.
Technical cooperation for Bolivia
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