Capital guarantee agreement signed with Paraguay

(Asuncion, October 27, 2011).- In a ceremony at the start of the 21st Latin American Summit of Heads of State and Government, held in Asuncion, Enrique García, CAF president & CEO, and Dionisio Borda, minister of Finance, signed a Capital Guarantee agreement for US$36 million, as another step in the country’s process of becoming a full member of the Institution. The signing was attended by the president of the Republic, Fernando Lugo, as witness of honor.

The agreement reaffirms the Paraguayan government’s commitment to integration by supporting the equity strengthening and consolidation of CAF - Latin American development bank - and securing its work for the development of the country and for Latin American integration.

After the signing García said "Paraguay has been a CAF shareholder since 1997 and the relationship has intensified since 2008 with the signing of the capital agreement under which the country began the process of becoming a full member."

"From CAF we confirm our support for the initiatives being put through by the Paraguayan government in its strategy to improve the country’s international competitiveness, and promote higher economic growth which is sustainable and socially inclusive " García said.

Minister Borda said "this signing is an important step on the way to Paraguay becoming a full member of the Institution. We hope that from this position Paraguay will be able to strengthen its relationship with CAF and the countries of the region, and gain access to increased technical and financial resources for new programs and projects. We are sure that CAF will continue as a key partner in this development process in our country."