CAF President & CEO presents Annual Report 2004

The president & CEO of the Andean Development Corporation (CAF), Enrique García, presented the Annual Report 2004 to the Board and Shareholders' Meeting, which was unanimously approved. The Report highlights a record amount of approvals of US$3.50 billion, a portfolio of US$7.80 billion, and a record net income of US$207.8 million.

García said that these results had been achieved in a favorable context of the Latin American economy characterized by a general recovery. "The year 2004 reflected significant improvement in terms of employment and income per capita, in an environment of price stability, favorable results from the external sector, and a renewed dynamic of integration processes."

2004: outstanding year for CAF

During the presentation of the Annual Report, García said that in 2004 CAF achieved a record figure of total approvals of US$3.50 billion covering key strategic areas for the region as follows: 46% economic infrastructure; 21% trade and private investment; 19% economic stabilization, structural reforms and competitiveness; 13% social investment, and 1% cooperation. In this respect, CAF is continuing its conceptual and financial support for a renewed development agenda for the region by stimulating initiatives that promote integrated stability, efficiency and social equity.

García also emphasized the steady increase in total portfolio to US$7.80 billion, which assures positive net flows to the shareholder countries and confirms the Corporation’s standing as the main source of external financing for the Andean region, contributing 62% of total approvals by multilaterals for the region in 2004.

The CEO of the multilateral organization explained that the portfolio by economic sector and technical cooperation funds are in line with the Corporation’s strategic programs, such as those linked to regional infrastructure development, competitiveness strengthening, support for MSMEs, governance strengthening, as well as social, cultural and community programs.

CAF has continued to maintain highly satisfactory financial indicators, reflected in 2004 by a record net income of US$207.8 million, "which is essential because it increases our capacity to finance non-reimbursable technical cooperation programs which provide decisive support for the development agenda." García added.

On financial management, García emphasized the confirmation of excellent credit risk ratings, important presence on capital markets, and the recognition of international financial markets.

Lastly, the CEO said that with the entry of the Dominican Republic into CAF, the number of shareholders increased to 17 which strengthens the Corporation's capacity to stimulate the growth and sustainable development of the region.