German funds to finance infrastructure

To finance infrastructure projects in the Andean countries, the Andean Development Corporation (CAF) signed on March 22 in Milan, Italy, an agreement with Kreditanstal für Wiederaufbau (KfW) for US$100 million. The finance will has a ten-year term and three year’s grace.

CAF Executive President Enrique García said that the operation would increase the multilateral lending institution’s sources of funds at very competitive costs and conditions for projects with a high integrationist content in the Andean countries.

With this operation the KfW is supporting, through the CAF, infrastructure projects and programs in the transport, energy, telecommunications, water and sanitation sectors to be executed by both public and private sectors, García said.

Kreditansatal für Wiederaufbau is a German development bank based in Frankfurt which maintains excellent relations with the CAF.

This operation confirms the CAF’s catalytic role which allows it to raise external funds on very attractive conditions and strengthen the competitiveness of the economies of member countries.