Financial agreement with EIB signed in Luxembourg

An important financial agreement between CAF and the European Investment Bank (EIB) was signed today in Luxembourg.

Under the agreement, EIB grants a line of credit to CAF for 40 million ECUS (US$45 million) at a 15 year term with a variable interest rate, according to the currency used (French francs, German marks or US dollars).

The funds will be used to finance projects – regional or national – in any of the CAF shareholder countries.

CAF’s main partners are the five countries which form the Andean Community of Nations (CAN): Bolivia, Colombia, Ecuador, Peru and Venezuela, along with the shareholders Brazil, Chile, Jamaica, Mexico, Paraguay, and Trinidad and Tobago.

The Corporation is the regional financial institution with the most successful access to international capital markets and best recognition by the world’s leading risk rating agencies. To date, placements on these markets exceed US$1.60 billion at the most competitive rates and terms achieved by a Latin American issuer.

The agreement was signed by EIB President Brian Unwin and CAF President & CEO Enrique García, who is on an official visit to Belgium and Luxembourg as member of a delegation from the Andean Community, whose purpose is to speed up development and institutionalization of the political dialogue between the two integration schemes (EU-CAN).

The signing was also attended by Ecuadorian President Fabián Alarcón, in his capacity as president of the Andean Community, the foreign ministers five Andean countries, and CAN General Secretary Sebastián Allegret.

García mentioned the positive context of relations between Europe and Latin America, which is now much more explicit, structured and with more content than at any other time during the 42 years of European integration experience.

García said "the two regions have lately experienced a qualitative jump in trade, political and cooperation relations, and the European Union’s interest in strengthening them. This agreement confirms my opinion because it makes European funds available to the shareholder countries in areas considered priority for their sustainable development."

He added that in the meeting the two financial institutions – CAF and EIB – agreed to cooperate on cofinancing operations in the shareholder countries involving infrastructure and integration projects, areas for which his institution had granted a large volume of financial support, considering their high priority for development of the region.