67th Board Meeting held

(Caracas, March 12, 1991).– Colombian Economic Development Minister Ernesto Samper took on the chairmanship of the CAF Board at its 67th meeting held in Caracas on March 11 and 12. He replaces Bolivian Planning and Coordination Minister Enrique García. Minister Samper will also head the Andean Pact Commission.

In accordance with the CAF Establishing Agreement, the post rotates annually - in the alphabetical order of the five countries which form the Andean group - among the holders of the "A" series shares.

The annual report of CAF President Galo Montaño was presented at the meeting, along with the audited 1990 balance sheet and financial statements. The meeting recommended their approval at the next Shareholders Meeting to be held in Caracas on March 20.

The meeting was attended by the principal and alternate directors of series "A" and "B" shares of the five member countries of CAF.

Development of foreign trade In the field of trade promotion, the Board approved a non-reimbursable technical cooperation grant for US$300,000 for the Colombian Export Fund (PROEXPO) to collaborate on design and implementation of a foreign trade bank. PROEXPO is responsible for developing and promoting Colombian exports, by granting credit facilities under pre- and post-shipment schemes. The Board approved an increase in its line of credit to US$40 million to finance foreign trade operations (SAFICO).

In addition, the Board increased the line of credit - also to US$40 - of the Latin American Export Bank (BLADEX), whose shareholders include most central banks of Latin America, several commercial and state banks, and others from the United States, Europe and Asia. BLADEX has been operating with CAF since 1989.

The third increase for a line of credit, again for US$40 million, was in favor of BARIVEN, subsidiary of Petróleos de Venezuela, to support operations and investment projects in the Venezuelan oil, petrochemical and coal industries.

New shareholders Three new private banks - all Peruvian - were authorized to subscribe to CAF series "B" shares. These are Banco Latino de Fomento de la Construcción, Banco Internacional, and Banco Continental. These financial institutions join 14 banks from the other member countries which were authorized last year to participate as shareholders, thus achieving the participation of commercial banks in the Andean integration process.

Loan Finally, the Board approved a US$20 million loan for Banco Nacional de Fomento of Ecuador for a credit program for the small industry and crafts sectors. CAF is providing extensive support for small business development because this sector absorbs a large part of the workforce in most Andean cities.