CAF again outperforms all its operating and financial indicators

The Andean Development Corporation today presented its Annual Report 2003, which describes the performance of this multilateral financial institution in Latin America during last year. The report’s central theme is the CAF’s role in the social development of its member countries and in regional integration through provision of sustainable physical infrastructure.

Presenting the report, CAF Executive President Enrique García said that in 2003 the institution again outperformed all its operating and financial indicators and maintained its positioning on international capital markets, thanks to excellent risk ratings, which he attributed to constant support from the shareholders and Board, combined with the joint efforts of the staff.

In 2003 the CAF approved operations for over $3.30 billion, an unprecedented figure in its history, and received capital contributions from its shareholders of a record $209 million, which reaffirms their backing and confidence in the institution’s soundness.

The funds approved included $619 million for Bolivia for projects related to transport, macroeconomic stabilization, improvement of productivity and competitiveness, productive and financial strengthening, and addressing the needs of the most vulnerable sectors of the population.

Colombia received approvals valued at $617 million, including $300 million channeled into government programs aimed at rationalizing the use of resources in the state administration.

Ecuador was the beneficiary of approvals totaling $438 million, including $360 million to support government efforts to improve the country’s macroeconomic and institutional environment.

Peru received approvals for $633 million allocated to the strategic areas of social investment, transport and energy sectors, improvement of productivity, governance and competitiveness, and productive and financial strengthening.

For Venezuela, total approvals were $535 million, including $458 million for operations in the transport, storage and communications sectors, as well as electricity, gas and water supplies.

The Corporation reported a record net profit of $136 million, despite the fall in international interest rates, and maintained an active presence on international capital markets with issues valued at over $1.50 billion, confirming its reputation as the most prestigious issuer in the Latin American region.

The chief executive said that in 2003 the CAF contributed to moderating the risks and weaknesses that still persist in the region and directed its efforts to promoting a pattern of high-quality sustained growth that is inclusive and participative, while offering timely and efficient support for its shareholder countries in response to their financing requirements.

In this context, García emphasized the support that the CAF has given to renewing the sustainable development agenda that Latin America is adopting, especially activities to improve the competitiveness environment and consolidate the integration process through the formation of physical and productive capital, in a framework of productivity, institutional strengthening and exploitation of natural capital, combined with the creation of human and social capital within the parameters of inclusion and governance.

The CAF Annual Report - which traditionally includes an examination of the Latin American economic context and the future of regional integration - has become a document that is widely consulted by professionals and experts in regional problems. The digital version of the report, in Spanish and English, is available on the CAF web portal – www.caf.com