CAF consolidates its position as leading financier of Andean countries

Amid the difficult economic and social context that Latin America has confronted in recent years, the CAF has strengthened its strategic vision through promotion of a renewed development agenda for the region, and has made record approvals, increasing its total portfolio from $6.53 billion in 2001 to $7.23 billion in 2002.

The figures were given by CAF Executive President Enrique García in his presentation to the Andean Council of Foreign Ministers, meeting during the XIV Andean Summit held in Quirama, one hour from Medellín in the Antioquian municipality of Carmen de Viboral.

The multinational lender has become the main source of financing for Andean countries. Last year, CAF approvals totaled $3.29 billion, representing 67% of all the funds approved by multilateral organizations. The approvals represent a positive flow of $800 million to its member countries.

García said that the positive balance of CAF´s work has been possible thanks to backing from its shareholders, financial strength, confirmation of its high rating as issuer by the international risk agencies which results in competitive access to international capital markets.

In line with the recommendation of the XIII Andean Summit held in Santa Cruz de la Sierra (Bolivia) in January 2002, the multinational lender increased its authorized capital from $3.00 to $5.00 billion and made a new subscription of capital of $460 million.

For the development of the South American Regional Integration Initiative (IIRSA), the financial institution has approved $1.20 billion for road, energy and communication integration projects in South America, García said.