Facilitating cooperation between South America and the Arab countries

(Quito, April 26, 2006).- At the meeting of Economics Ministers of South America and the Arab countries in Quito, the president & CEO of the Andean Development Corporation, Enrique García, was invited to Ecuador to speak on Promotion and strengthening of financial cooperation mechanisms between regional financial institutions.

García told the participants that the Quito summit would stimulate relations between South America and the Arab countries and create opportunities to construct new sources of financing to combat poverty, channel possibilities of investment in energy and services infrastructure in South American countries, promote tourism between the regions, stimulate the creation of joint ventures and promote trade. He emphasized the importance of financial institutions such as the Latin American Reserve Fund (FLAR) and CAF, which could be used as vehicles to strengthen relations with Arab countries.

García added that "Latin America faces great challenges such as improving wealth distribution, making real headway in reducing poverty, and preventing a cyclical growth rate." He insisted on the need to diversify exports, increase savings and investment, improve competitiveness, strengthen institutions, and achieve sustained quality growth, in an effort to promote equity and combat poverty.

CAF as strategic partner García referred to CAF’s importance as a strategic partner for regional development and international cooperation. The Corporation has financed over 40 physical integration projects in South America for around US$3 billion, which have mobilized total investments of over US$9 billion. In addition, total financing of about US$19.00 billion was approved from 2001 to 2005.

CAF leading provider of multilateral finance to Ecuador The multilateral financial organization offers permanent support to Ecuador. From 2001 to 2005, CAF approved operations totaling approximately US$2.36 billion for the public and private sectors, making it the country’s leading provider of multilateral finance.