Emergency loans and two trade operations approved by Board

(Caracas, May 11, 1993). -- Due to the tragedy, which is affecting the Ecuadorian people following the bursting of the banks of the Paute River, CAF approved an emergency disbursement of US$9 million under the National Road Program.

The resolution was adopted at the 78th meeting of the CAF Board held in Caracas, Venezuela, on May 7.

In January this year, CAF approved a US$30 million loan to cofinance the Road Program which the Ministry of Public Works and Communications (MOT) is implementing through the Public Works Department.

The objective of the program is to raise the level of service and improve management of the country's road system in order to reduce the impact of transport costs on prices of products.

Part of the project will be financed by the Inter-American Development Bank (IDB) and CAF through a Multiyear Investment and Maintenance Program to be implemented from 1993 to 1997.

Given the state of emergency declared in the country, the Board agreed to make an exceptional 30% advance on the loan granted by CAF (US$9 million) to finance the rehabilitation works needed to repair some of the damage caused by the natural disaster which destroyed over 1,000 km of road and rail connections.

The meeting also approved a non-reimbursable technical cooperation operation for 285 million sucres to increase the fund created by Corporación Financiera Nacional, which will be channeled to non-profit organizations for creation of productive craft and microenterprise units in the area affected by the tragedy.

Foreign Trade Another Board resolution increased to US$27 million a line of credit granted to Filanbanco, one of the most important financial institutions in Ecuador.

This credit facility will increase the number of foreign trade transactions with short-term finance facilities.

Another line of credit granted to the Ministry of Finance was increased to US$25 million; this facility finances the commercial operations of the Ecuadorian Electrification Institute (INECEL). The increase will be used to acquire goods for electricity substations in the National Transmission System.