COFIDE line of credit increased to US$100 million

(Caracas, December 3, 1998).– CAF today approved an increase to US$100 million of the revolving line of credit for Corporación Financiera de Desarrollo del Peru (COFIDE).

The credit facility establishes a risk quota for COFIDE which it will use for a range of activities, especially finance for short-, medium- and long-term trade and working capital using more competitive funds.

CAF President & CEO Enrique Garcia said the operation was part of the support granted to strengthen Peru’s financial institutions, and is an example of the excellent relations between both institutions. COFIDE is the institution which holds the instruments of the Peruvian government’s participation in CAF share capital.

Last year CAF approved two operations to support the Institutional Strengthening Program which COFIDE is implementing, whose goals include incorporation of new shareholders, support for small and medium-sized enterprises in urban and rural areas, and strengthening the financial intermediaries linked to productive sectors considered priority for the country’s economy.

In the past CAF has granted COFIDE global credits to finance investment projects in various economic sectors and to support companies already privatized or in process of privatization, with their reconversion, modernization and expansion projects.

As part of its diversification into new business areas, CONFIDE also manages trusts in funds related to the privatization process, holds lines of credit from leading American and European banks, and has received syndicated loans from prestigious banking institutions.

The CAF share capital is held by the five countries of the Andean Community: Bolivia, Colombia, Ecuador, Peru and Venezuela, along with Brazil, Chile, Jamaica, Mexico, Panama, Paraguay and Trinidad and Tobago, nations which are part of other integration mechanisms such as Mercosur, FTA and CARICOM.