Increased cooperation with the Caribbean area

The loan will finance foreign trade operations between the Caribbean nation and CAF member countries, as well as with third countries provided the exported product contains at least 50% of inputs from the Andean nations.

Since last year, CAF has established productive institutional and commercial contacts with the Caribbean area, which has led to joint business between private companies in both areas.

On September 7, 1992, a similar agreement was signed with Royal Bank of Trinidad and Tobago, which has also led to commercial transactions between the companies Nestlé of Ecuador and Trinidad; Colombiana de Cerámicas and Central Caribbean Distributor; and between Hoechst de Venezuela and Lever Brothers West Indies of Trinidad, among others.

Later, in October, Trinidad and Tobago Prime Minister Patrick Manning, who also heads the Caribbean Community (CARICOM), made an official visit to CAF headquarters in Caracas to familiarize himself with the actions the Corporation is taking to expand links between the two regions, which include preparation of a detailed study on markets, products, customers, availability of transport and distribution channels.

Caribbean companies have expressed great interest in the credit mechanisms which CAF provides to facilitate foreign trade, such as the Andean Trade Financing System (SAFICO) and the Letter of Credit Confirmation and Financing Mechanism for Imports from Third Countries (MECOFIN).

The agreement was signed in Bridgetown, Barbados, by CAF President & CEO Enrique García, and Governor of the Central Bank of Barbados Calvin Springer.

The CAF president said the closer relations with the Caribbean community -- combined with the entry of Chile and Mexico into CAF capital – was part of the new strategic orientation of the financial institution aimed at making a pragmatic contribution to expanding economic relations in Latin America and the Caribbean.

"CAF has become a flexible and effective communication bridge between the Andean Group and other regional integration schemes, given the dynamic of these processes. Almost all countries of the region are committed to making efforts on reciprocal free trade, harmonizing their economic policies and moving forward with opening their financial markets. This has resulted in a considerable increase in trade and investment, which strengthens our commitment to economic cooperation, especially with the most dynamic part of the process: the private sector," García said.