Chile reenters Corporation

(August 1992).- Chile returned as CAF shareholder following the signing by CAF President & CEO Enrique García of a share subscription agreement with Minister Vice President of the Chilean Economic Development Agency (CORFU), René Abeliuk.

Under the agreement - signed in Santiago on August 18, 1992 - implementing the decision of Chilean President Aylwin to accept the invitation to Chile from the presidents of the five Andean countries (Bolivia, Colombia, Ecuador, Peru and Venezuela) to rejoin CAF as shareholder. The Chilean counterpart organization will be CORFO because of its competence in financial and technological cooperation, and its specialization in development work.

In 1970, Chile was a founding member of CAF but withdrew in 1977 after leaving the Andean Group. The financial strength and considerable economic capacity which the Corporation has achieved in the last five years opens multiple opportunities for benefiting from closer ties between the Andean and Chilean economies. For this reason, the Chilean government considers that CAF will be an effective instrument for developing and strengthening financial relations, trade and cooperation initiatives between the subregion and Chile.

One of the most important activities to be implemented through CAF is the exchange of lines of credit to finance exports between the six countries through the Andean Trade Financing System (SAFICO) which CAF has developed.

Possible technical cooperation projects which could be implemented jointly include development of exports of capital goods and related services, together with collaboration to establish a supplementary exportable offer of fruit and vegetable products of Chile and the Andean countries, with the objective of capturing new markets in third countries.

Promotion of Andean-Chilean business, including trade and attracting investments from third countries, will be the central concern of cooperation between CAF and CORFO in developing their economic ties.