New agreement signed with Mexico

(Caracas, November 12, 1990).- To expand and strengthen the exportable offer of the Andean Group as a means of improving intra-regional trade, and opening to third markets, a technical cooperation agreement was signed today (November 12) with the Mexican National Foreign Trade Bank (BANCO-MEXT).

The agreement promotes new productive and trading companies for non-traditional products by strengthening financial support instruments, technical assistance and export promotion.

Mexico participates in the CAF capital as the first non-Andean country to join the institution. Exactly one month ago, CAF signed with Nacional Financiera - body authorized by the Mexican government to subscribe to 4,000 "C" series shares - a technical cooperation agreement which, along with the one signed today, open up for both Mexican and Andean exporters of goods and services an important market in projects of pre-investment studies and technical assistance, creation of industrial parks and free zones, as well as a fluid exchange of business, investments and financial and technological support.

The agreement – with a duration of two years - was signed in the CAF headquarters in Caracas by CAF President & CEO Galo Montaño and the director-general of BANCOMEXT, Humberto Soto. Both parties agreed to analyze cofinancing schemes for developing the exportable offer, designing promotion programs by economic sector, and permanent exchange of information on the commercial prospects offered by the Mexican and Andean markets.

At CAF’s request, BANCOMEXT will provide advice on areas such as information technology, international trading, market studies, export consortium, maquiladoras and overseas commercial offices, among others.

Line of credit Also on this occasion, a line of credit granted by BANCOMEXT to CAF in July last year was extended for another year, for an amount of US$10 million.

This credit will be used to finance businesses resident in any of the Andean countries which wish to import primary products, raw materials, durables, spare parts, and capital goods and services of Mexican origin.