CAF President on Official visit to Andean Countries

García of Bolivian nationality took office as CAF president on December 10 last, after being elected unanimously by the five member countries which form the Corporation. The purpose of the tour was to present the main programs that CAF will promote in the near future in these countries, especially in the areas considered priority for development. The funds available - he said - will depend on the parameters of efficiency and competitiveness offered by the applicant sectors.

García held meetings with ministers of the economic-financial team and other personalities in government and private sectors, who informed him of their requirements and concerns in the areas of project financing, foreign trade, support for small- and medium-sized enterprises, and regional cooperation, among other topics of interest, all of which will contribute to the preparation of the CAF operating strategy during the new president's five-year term (1991-96).

The program included a series of meetings with presidents and directors of leading newspapers aimed at forging closer links and motivating the media to report on priority aspects of Andean integration which is at a crucial stage.

The CAF president has been making similar contacts in Venezuela and will visit Bolivia from February 10-15.

Results

The first result of the CAF president’s tight agenda of meetings was the political and institutional backing which the Andean presidents offered to the CAF project to increase the number of shareholders from extra-subregional countries, for example, Mercosur members and various developed countries.

This expansion policy had its first success with the entry of Mexico in 1990, and Chile in the near future which will subscribe $5 million to series "C" shares.

García also received total support for his proposal to grant a more significant role to the private sector in the process of opening and internationalizing the economy, particularly in relation to the programs to increase production of goods and services, industrial reconversion and expansion, improvement of productivity and quality, financing, marketing and facilities for foreign trade operations.

Along these lines, CAF will promote direct investment in the subregion and the association of businesses and capital - foreign and local - for projects of great economic significance for the Andean area. He emphasized the importance of associations with the “first world" since they will have the advantage of being accompanied by modern technology and advanced commercial practices.

In meetings with executives of commercial banks and industrial finance corporations - some of which are shareholders of the Corporation - a series of procedures were examined to speed up the use of the CAF funds to which they have access.

Optimism about the future

Marked optimism about the new positive cycle of Latin American economies - and the subregion in particular - was expressed during the CAF president’s visit. All Andean countries have reported promising economic growth and substantial reductions in inflation, and have made progress with the debt problem and implemented decentralization and restructuring of the State, including privatization of sectors whose efficiency is critical for industrial development and reconversion.

In all this process, García said, CAF is offering decisive support and constantly adapting to the new reality of Andean integration which is possible because of the flexibility of its Establishing Agreement.

In this context, he added, CAF is – with respect to capital – one of the largest banks in Latin America and the largest in the subregion.

Finally, during the tour several loan agreements were signed, which in the case of Peru alone total US$115 million.