CAF celebrates XX anniversary

(Caracas, June 17, 1990).- "CAF is a convincing example of what Latin America needs to do to make integration no longer just a utopia," said Venezuelan President Carlos Andrés Pérez on closing the solemn commemorative session of the XX anniversary of the Corporation.

CAF celebrated its birthday with an intense week of work, which saw its authorized capital doubled, Mexico approved as new shareholder country, and cooperation agreements signed with Mexico and Denmark.

DECORATIONS The solemn session held in the Teresa Carreño Theater in Caracas was the only protocol celebration. On this occasion CAF presented decorations to the signatories of the Establishing Agreement: Tomas Guillermo (Bolivia); Jorge Valencia Jaramillo (Colombia); Salvador Lluch Soler (Chile); José de la Puente (Peru); and Héctor Hurtado (Venezuela). The former CAF presidents received the same distinction: Adolfo Linares and Julio Sanjines (both Bolivian nationality), and José C. Cárdenas (Ecuadorian).

Venezuelan President Carlos Andrés Pérez attended the ceremony accompanied by several of his ministers, members of the Shareholders Meeting and the CAF Board, ambassadors from various Latin American countries and other continents accredited in Caracas, and CAF officers headed by President & CEO Galo Montaño.

NEW DIMENSION Opening the solemn session, Montaño reviewed the 20 years of the organization he heads. "CAF began its operations with a capital of US$25 million, payable in five years. The authorized capital was US$100 million. Last Tuesday, the Shareholders Meeting increased the authorized capital to US$2.05 billion."

The CAF president added: “in its first 20 years from 1970 to 1990, our institution granted loans for projects totaling over US$1.35 billion, trade finance over US$1.70 billion, non-reimbursable technical assistance and special programs US$21 million, giving a grand total of US$3.10 billion."

"A yardstick of the Corporation’s dynamism is growth of operations between 1987 and 1990. In these four years, operations reached a total of US$2.20 billion, equivalent to 70% of all operations in the last 20 years."

"For the 1991 to 1994 period, the total exceeded US$4.60 billion, 1.5 times more than the activity of the first 20 years of CAF."

Montaño said this quantitative increase went hand in hand with the qualitative improvement of the work done by CAF in the last four years: promotion of subregional and foreign investments; support for creation of Andean multinational companies; use of loans and meetings and seminars to stimulate private sector participation in the Andean economy; and contribution to incorporating biotechnology and productivity into private and state companies in the five countries, etc.

BRIDGE FOR INTEGRATION Bolivian Planning Minister Enrique García, in his capacity as chairman of the Board and the Shareholders Meeting analyzed the world economic situation and referred to the role that the subregional integration system, and particularly CAF, has played in these years of crisis. "The Corporation became one of the few Latin American institutions which, with access to international sources of finance, could channel capital into the Andean countries."

García added, "with great pride we report that CAF has reached full maturity and has gained an important place in its own right in the international financial world." "CAF is the strongest pillar and an ideal bridge between the Andean Group and the other integration schemes of the Latin American region."

SURPRISING BALANCE SHEET The Venezuelan president closed the solemn session with a speech in which he examined the current international situation, particularly Latin America. On the Corporation, he said the figures presented by the CAF president were an extraordinarily positive balance, "quite surprising." He added, "the Corporation has been playing an increasingly important role in confronting the serious handicap of financial obstacles to trade. The 20 years we celebrate today are reason for justified rejoicing and allow us to show in actions how the initiatives, which we are together putting into practice, are evidence of the immense possibilities and benefits of integration."

"In the 1980s, CAF proved to be a very efficient financial intermediation organization and a singularly valuable instrument for strengthening Andean integration. At times when access to credit from commercial banks and international financial organizations was impossible, some of our nations were able to maintain their activity thanks to support from the Corporation which channeling funds from the industrialized countries to the Andean Group."

President Pérez continued, "it is fundamental for the Corporation to become a permanent, stable and reliable source of funds for the development of member countries. This is why we have given decisive support to strengthening its financial capacity with the capital increase capital to US$2.5 billion, which is a significant rescaling of the financial arm of integration."

President Pérez ended, "we celebrate this act as a convincing example of what Latin America needs to make integration no longer simply a utopia but a possible objective. Millions of Latin Americans are watching our initiatives and now understand that integration is the only way to solve our vital problems."