Enrique García reelected CAF President

(Caracas, June 27, 2006).- In an extraordinary meeting of the Board of the Andean Development Corporation (CAF) held today in Caracas Venezuela, Enrique Garcia, of Bolivian nationality, was unanimously reelected president & CEO for a new five-year period. One of the most highlights of his administration has been the sustained growth and quality of CAF operations in these last 15 years, with approvals of US$40.00 billion, 12 times more than approvals in the first 20 years of the institution. Practically all the operating-financial indicators have recorded similar growth.

CAF has also made a permanent contribution to mitigating the risks and weaknesses that still persist in Latin America. Fulfilling its anti-cyclical role, CAF has given timely support to the shareholder countries, especially in times of economic difficulties often resulting from external shocks. It has also played a fundamental catalytic role in attracting external finance, mainly for the private sector. As a result, the projects financed by CAF in the last ten years have mobilized funds of around US$17.00 billion for the development of its partner countries.

The institution has been the main multilateral source of financing for the Andean countries for several years, with growing importance as a long-term provider of resources, which are the most difficult to access. The Corporation is also an important financing alternative for non-Andean partners, with approved operations valued at over US$3.50 billion.

Another outstanding development was the opening of CAF membership to other countries as series "C" shareholders growing from the five members of the Andean Community - Bolivia, Colombia, Ecuador, Peru and Venezuela - to include all the members of Mercosur, as well as five Central American and Caribbean countries, along with Chile, Mexico and Spain. The shareholder base is likely to continue expanding in the future. Moreover, in 2005 an amending protocol to the CAF Establishing Convention was signed, which gave an opportunity to the non-Andean partners and other countries in the region to access the benefits of full membership by becoming series "A" shareholders.

With this strategy, CAF has played an articulating role between the different regional integration schemes, particularly in South America. An example of this is the approval of over 40 physical infrastructure integration projects involving an investment of over US$10.00 billion.

An important aspect is the CAF commitment to promotion of a renewed development agenda for Latin America aimed at stimulating high sustainable growth leading to a reduction of poverty and inequality in the region. In this context, with an integrated view based on parameters of sustainability, inclusion, Latin American identity and respect for diversity, the institution is working to improve the competitive environment, strengthen the integration process, reinforce governance and institutions in a democratic framework, responsibly exploit natural capital and contribute to the creation of human and social capital.

In the interests of social inclusion, in recent years CAF has emphasized culture and community, training, micro and small enterprises, education of young people and children in music and sport. Another important area has been the activity related to social infrastructure in favor of the most vulnerable population through innovative schemes that use to the maximum the resources destined for social credit.

These operating results, combined with financial strength, have transformed CAF into an institution of recognized solvency and world prestige, which facilitates access to international capital markets - with 51 bond issues totaling over US$7.00 billion - on the most competitive conditions for a Latin American issuer backed by steady improvement of risk ratings which are now the best in the region.