Denmark supports development of the Andean countries through CAF

An important financial agreement between Denmark and CAF was today signed in the headquarters of this institution in Caracas.

Under the agreement, the Danish Foreign Ministry (DANIDA) grants a line of credit to CAF mainly to finance development social infrastructure and environmental protection projects executed by public or private companies in the member countries.

The amount of the line totals US$20 million for the first two years, although this amount can be increased because the idea is to use it as extensively as possible. The funds will finance imports of products and services from Denmark through conditional loans. The facility expires in 2001 with the possibility of renewal by mutual agreement.

The agreement was signed by the Danish ambassador in Venezuela, Soren Voss, and CAF President & CEO Enrique García, who said it was important for the Corporation because it would make available funds in priority areas within the concept of sustainable human development, notably environmental preservation and provision of physical infrastructure in sectors which are very often excluded from traditional finance.

Bolivian Enrique García -- who has headed CAF since 1991 and has just been reelected for a second five-year term by the five member countries – has adopted an extensive physical infrastructure plan as a contribution to regional integration, at the same time as integrating environmental action in all operations.

CAF shareholders include 22 private banks from the Andean region and four extraregional countries: Brazil, Chile, Mexico and Trinidad and Tobago, soon to be joined by Jamaica.

The agreement signed today will finance imports of Danish goods and services, such as machinery for processing agricultural and fishery products, treatment of solid wastes and liquids, provision of drinking water, electricity generation and transmission in rural areas, medical equipment, food storage, and equipment for airports, ports, railways, along with others which may be agreed by the parties.