Chile strengthens relations with CAF

(Special, July 15, 2009).- In the presence of honor of Chilean President Michelle Bachelet, CAF President & CEO Enrique Garcia signed with Finance Minister Andrs Velasco an important agreement to facilitate the future development of CAF's activities in Chile. Present at the ceremony were Foreign Minister Mariano Fernndez; Minister of Economy, Development and Reconstruction Hugo Lavados; and Minister of Public Works Sergio Bitar, among others.

Also at the meeting in La Moneda Palace, a memorandum of understanding was signed between the multilateral financial organization and the Ministry of Public Works; and a technical cooperation agreement with the Ministry of Economy, Development and Reconstruction.

President Bachelet said, "we are living in very complex times for the region; the international community faces the most severe economic crisis of the last 60 years, in which institutions such as the Inter-American Development Bank and the Andean Development Corporation are being called on to play a very important role." She emphasized the need for capitalization of the multilateral credit organizations, adding that access to financing by countries would be the key to the economic recovery of Latin America.

On the agreement on immunities and privileges signed with CAF, President Bachelet expressed her satisfaction considering it a "tremendous step" which will stimulate the partnership between Chile and CAF to the full. "CAF is a solid stable institution with excellent management which has been recognized by international risk rating agencies and given the highest ratings," she said.

Garcia said, "this is an historic opportunity for CAF to deepen its interaction with Chile and marks the start of a new stage in bilateral relations. With this agreement the Corporation will be able to promote important activities and operations with the public and private sectors in Chile." He added that a mission would visit Chile soon to develop projects which are strategic for the country, and for regional integration and sustainable development. He said the multilateral institution was interested in opening an office in Chile in the near future.

Joint effort The memorandum of understanding signed with the Ministry of Public Works will give technical support to the sectoral authorities of the countries of the region on key areas of infrastructure development and management, especially roads, ports, air and urban transport. As a result the positive experiences in infrastructure achieved by Chile will be applied in other Latin American nations.

Finally, as support for the Third Competitiveness Forum of the Americas, an agreement was signed with the Ministry of Economy, Development and Reconstruction under which CAF will provide non-reimbursable funds for this high-level meeting to be held in September in Santiago. The forum will open a valuable space where the ministers of Economy and Industry of the Americas can meet with academics and business leaders to discuss scenarios and opportunities in the region in the current world economic situation.