Agreement with Chile to stimulate trade

(Caracas, June 7, 1995).-- A memorandum of understanding with Corporation de Fomento de la Producción (CORFO) of Chile will be signed tomorrow in Caracas for the future granting of a line of credit to stimulate trade between the member countries of the Andean Group and Chile.

The parties to the agreement said their intention was that CAF should participate in the program for financing exports of capital goods, durable consumer goods and engineering and assembly services, developed by CORPO, with CAF acting as fund intermediary.

CORFO will consider the agreements adopted as a financing scheme for Chilean exporters, with CAF as creditor of Andean importers.

Chile, with Mexico and Trinidad and Tobago, has been a member of CAF capital since 1992, year when the country subscribed to "C" series shares for over US$5 million. These shares are reserved for extra-regional countries.

Chile was founding member and full shareholder of CAF until 1997 when it withdrew from the Andean Group over disagreements with the economic model adopted at the time. However, in view of the adoption of similar macroeconomic policies, Chile today maintains commercial relations and does business with all the Andean countries through bilateral agreements or institutions such as CAF.

The agreement between the two institutions will be signed by CAF President & CEO Enrique García, and CORFO general manager Eduardo Colodro.