Record figures for CAF in 1992
Operations approved totaled US$1.93 billion which, compared with the US$1.20 billion approved in 1991, is an increase of 48%, García said.
Of this amount, US$1.10 billion went to the private sector, approximately 55% of the total, which reflects an important shift in the Corporation’s orientation, which is acting in line with the policies of the countries of Latin America. "If we add the funds we granted to public financial institutions for the private sector, the figure is even higher," he added.
Disbursements in 1992 totaled US$1.50 billion; a 40% increase compared with the US$1.00 billion disbursed a year before.
Additionally, the distribution of operations is more balanced between countries, and between public and private sectors.
PRIVATE SECTOR
"Along these lines -- he continued -- we are supporting the countries in their privatization processes and directing our activities increasingly toward development of small- and microenterprises, fundamental factor for expanding wealth and ownership and reinforcing capital markets."
Many of the CAF loans are channeled to small- and medium-sized enterprises through financial intermediaries such as public and private banks of the subregion.
INTEGRATION
He added that there is now a free-trade area between Bolivia, Colombia, Ecuador and Venezuela, while Peru, the fifth member, has a temporary suspension from some commercial and economic aspects until December 1993. However, Peru has signed some bilateral agreements to preserve the existing trade flows with Venezuela and Colombia. In relation to Ecuador, the bilateral agreement negotiated increases trade liberalization; and with respect to Bolivia, there is virtually a bilateral free-trade zone.
He said the common external tariff was low and consistent with the policy of the participation of Latin America in the international economy, and there is a customs union between Venezuela, Colombia and Bolivia.
"In this context, CAF must become the vehicle of communication between the Andean Group and other regional integration schemes," García said.
In this respect, CAF expanded its shareholder base with the entry of Chile in August 1992. It also opened the possibility of integrating the Andean and South American countries with the Caribbean area by granting lines of credit to Trinidad and Tobago, and soon to Jamaica and Barbados. Additionally, the first operation took place with the Banco Centro Americano de Integración. These actions show that CAF is an important bridge between integration schemes for investment and trade.
Also during the year, the Corporation strengthened its international position and is now positioned among the world’s 500 largest banks. According to Euromoney magazine, CAF is in position 393, number 12 in Latin America, and - excluding Brazil, Argentina and Mexico - is the largest bank in the region with respect to capital.
PLANS FOR 1993
Another important point emphasized by the CAF president was development of capital markets, because they stimulate domestic saving, strengthen stock markets, and create instruments appropriate for improving distribution of wealth and strengthening markets.
He assigned great importance to ecological issues and announced that CAF would develop programs to improve use of funds, avoiding damaging effects. The projects financed will be analyzed with the necessary care to measure the environmental effect and introduce the required corrections.
Finally, García said he was optimistic about the future growth of the institution he heads.
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