Enrique García reelected CAF president & CEO

(Caracas, June 28, 2011).- Enrique García was reelected president & CEO of CAF - Latin American development bank - at a special meeting of the Board held today at its headquarters in Caracas.

Juan Carlos Echeverry, Colombian minister of Finance and Public Credit and president of the CAF Board, said the vote was unanimous. "The reelection of Enrique García as head of CAF not only reflects recognition of his outstanding work as head of the institution, but also the conviction that he is the best person to lead its final transformation from Andean institution to Development Bank of Latin America" Echeverry said.

An outstanding aspect of the García administration is the significant growth of CAF and its transformation from a small subregional institution with five partner countries into a development bank with Latin American projection, now with 18 shareholder countries.

This significant growth is also evident in the volume and sectoral and strategic diversification of operations achieved by implementing the CAF integrated agenda for the sustainable development and integration of Latin America.

During his administration, the development bank’s capital has increased over 10 times to US$5.753 billion, total assets 18 times to over US$18.50 billion, and direct portfolio almost 25 times to approximately US$13.80 billion, all of which reflects enormous financial and capital strength and the expansion of operations and influence in the region.

Institutionally, the García administration has achieved milestones which have substantially changed the institution’s size and scope; above all the amendment to the CAF Establishing Agreement which opened membership to all Latin American and Caribbean nations. The amendment also formalized the subscription of shares by which Argentina, Brazil, Panama, Paraguay and Uruguay became full members with the same rights as the founders.

Alongside this growth, the institution has maintained its financial strength with steady improvement of credit ratings; as a result CAF is now the frequent issuer with the highest credit ratings in Latin America and one of the leading multilateral finance organizations for the countries of the region. The institution maintains a constant presence on international capital markets placing issues totaling approximately US$12.50 billion between 1993 and 2010.

New challenges for the coming five-year term

Looking to the future, García said "the institution’s main challenges are related to adaptation of the organizational structure to the new Latin American dimension and to the projected growth of our operating and financial indicators. Another important challenge is the constantly changing regional and international environment, characterized by a diversity of national and cultural views and by the consolidation of a global production system in which Asia is emerging as one of the centers of global power."

"This requires - he added - deepening CAF’s importance for the region and its shareholder countries by continuing to improve our capacity to respond rapidly, efficiently and flexibly; preserving financial stability and improving the institution’s competitiveness; building its role as a center for Latin American reflection; and supporting the region’s participation in the global economy; all this in the context of our mission which is to promote the sustainable development and integration in the region."

In conclusion the CAF chief executive said, "I assume this new responsibility fully aware of the challenge involved but confident in the future of Latin America and CAF and grateful for the Board’s renewed confidence in the institution and myself."

Before beginning his first term with CAF in 1991, García served in his country Bolivia as minister of Planning and Coordination, head of the Economic and Social Cabinet. He has also held senior executive positions in the Inter-American Development Bank where he was Treasurer.