Ecuador subscribes to increase in CAF share capital

(Caracas, June 30, 1999).– The Republic of Ecuador today increased its participation in CAF share capital after acquiring a large quantity of Series B shares of the multilateral financial institution for a total of US$46 million.

The increase was agreed last December at the eighth Shareholders Meeting – highest governing body of CAF – which approved an increase in authorized capital from US$2.50 to US$3.00 billion, by issue of 100,000 series B shares of ordinary capital with a nominal value of US$5,000 each.

The same meeting also agreed to open subscription of new shares to the existing series "B" and "C" shareholders, for a value equivalent to 65% of the ordinary capital subscribed by them to date.

The agreement was signed in CAF headquarters in Caracas by Ecuadorian ambassador to Venezuela Marcelo Fernández de Córdova, and CAF President & CEO Enrique García, who said "this increase in capital is part of the strategy of strengthening CAF capital, so that the institution can maintain or upgrade its current risk ratings – the best in Latin America – and continue accessing international markets on good conditions in order to guarantee continued backing for the sustainable development of its shareholder countries and regional integration."

Harmonious participation The Corporation’s capital structure reflects the philosophy of harmonious and balanced participation of its principal members: the five countries which form the Andean Community. As a result, Colombia, Peru and Venezuela each contribute 28% of the series B shares, and the remaining 8% comes from Bolivia and Ecuador, while participation in the series A shares is equal for the five countries. Series C are reserved for governments or public or private institutions from countries outside the Andean region, currently Brazil, Chile, Jamaica, Mexico, Panama, Paraguay and Trinidad and Tobago.

Ecuador today subscribed to a total of 4,403 shares, as Bolivia did last May 7. For its part, Colombia, subscribed on the 23rd of this month to 15,500 series B shares for a total of US$163 million.

The governments of Peru and Venezuela are taking the necessary steps to increase their participation in the share capital of the Corporation in the near future.