Cooperation opportunities for Spanish companies

(Madrid, February 12, 2004).- Prince Felipe of Spain today opened in Madrid the seminar The role of the Andean Development Corporation in Ibero-America: Cooperation opportunities for Spanish companies, organized by this multinational financial institution jointly with the Ministry of Economy and Foreign Trade Institute of this European country.

Prince Felipe’s opening address was followed by remarks by CAF Executive President Enrique García, and Spanish Secretary of State for Commerce and Tourism Francisco Utrera. The session was closed by the First Vice President and Minister of Economy Rodrigo Rato y Figaredo.

García emphasized the importance of this event, whose objective is to deepen relations with Spain. In this context, he said that in the ongoing process of integration between Europe and Latin America, Spain is the most effective communication channel for forging closer ties between the two regions and developing commercial networks to increase trade through promotion of long-term direct investments.

The seminar opened today with an agenda that analyzes the opportunities and risks for investment in Latin America, along with the CAF’s financial capacity, its role in the infrastructure business in the region, and its support for the private sector. A paper was presented on the structure and utilization of the Spanish Fund for Consulting. The event was attended by over 130 business representatives, and officials from the Spanish public sector.

After the seminar, meetings were held between Spanish companies interested in developing business in Latin America and CAF officials to identify future areas for joint action.

In March 2002 Spain subscribed to $100 million of CAF common stock, and $200 million subscribed callable capital, which has strengthened the economic, cultural, political and social links with the Latin American region.

Relations between the CAF and Spain date from before its entry as a shareholder. Financial institutions such as the Official Credit Institute, Caja Madrid, Banesto, Banco Santander Central Hispano and Banco Bilbao Vizcaya Argentaria have taken part in financial operations with the Corporation through lines of credit to finance Spanish trade and investments in the region, and type A/B co-financing operations in which the CAF participates as part of its catalytic action to attract external funds into Latin America.

In another development, the Spanish government, through the Ministry of Economy, approved the Spanish Technical Cooperation Fund with a capital of €5 million, which the CAF will manage. The Fund will offer non-reimbursable grants to tourism, preinvestment and technical cooperation projects.

For its part, the CAF maintains an outstanding presence in the Spanish commercial paper market with the launch in 2000 of a €500 million joint program with Caja Madrid, Banco Bilbao, Banco Bilbao Vizcaya Argentaria, and ABN Amro Bank.